Rationale and policies for the green growth of cities and regional economies

Abstract

By linking environmental quality to economic growth, green growth is emerging as a new paradigm for urban policies. The paper discusses a policy package for green growth of cities and regional economies, made of four interlocking pillars: a) greener public services and purchasing behavior, b) eco-efficiency of industrial production, c) consumer awareness and demand incentives, d) support for research and innovative applications of green technologies. Urban green growth strategies are more likely to succeed if they account for policy interventions in each of these four domains. Prioritization among the different interventions needs to be based on an accurate screening of possible complementarities among the four pillars. Within the strategy, interventions in one domain unlock positive developments in other domains. Synergies and possibilities for leverage do exist at the local level, as well as potentials for policy experimentation. More knowledge of how the local economy works and a strong capacity to pursue interdepartmental and multi-level programs are essential requisite to seize the employment and growth potentials of the low-carbon transition.