**3. Globalization and economy**

This section analyzes the interaction between the existing green growth economic model and sustainability in the context of globalization. Alternatives to green growth economic models are also explored.

#### **3.1 Green growth paradigm**

The Organization for Economic Co-operation and Development (OECD) has a green growth strategy set in place since 2011 [38]. The OECD views green growth as an approach to foster economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies [38]. The United Nations has a similar concept of green economy, which is a low-carbon, resource-efficient, and socially inclusive economy. Growth in the green economy is driven by public and private investments based on the understanding that natural assets are critical economic assets [39]. An umbrella term "green growth" is adopted in this chapter to refer to any growth-based economic models.

Green growth assumes that economic growth can be decoupled from environmental pressures. In order to evaluate green growth, an approach to measure it has been proposed by comparing gross domestic product (GDP) with resources productivity [40]. Green growth is said to occur when percentage increase in resources productivity is higher than the percentage increase in GDP. For instance, if a country experiences a GDP growth of 2%, and its carbon productivity improves by 4%, the country displays green growth in the climate dimension [40]. Carbon productivity here is an example of resource productivity and is a measure of GHG emission reduction. Overall, green growth should reduce environmental pressure.

Economic components of globalization such as foreign direct investment and trade openness are promoted in OECD countries to accelerate green growth, and it has been found that these components help reduce GHG emission [41]. However, although the implementation of green growth has the tendency to reduce GHG emission [42], global GHG emission is expected to be record high as the world economy recovers from coronavirus [43]. For instance, both China and India surpassed their 2019 emission peaks in 2021. Chinese emission grew by 5.5% between 2019 and 2021, while Indian emission grew by 4.4% [43].

#### **3.2 Alternative economic models**

Critics of the green growth paradigm argue that empirical evidence on resource use and carbon emission does not support green growth theory [44]. It has been argued that there is no empirical evidence to suggest that absolute decoupling from resource use can be achieved on a global scale while continuing economic growth [44]. Consequently, alternatives to green growth have been explored. Degrowth and policies for social equity are examples of alternative to green growth [45].

Degrowth paradigm relies on a construct that continuous economic growth and ecological sustainability are incompatible. Therefore, it argues for reduced production and consumption. Likewise, policies for social equity (PSE) are based on a concept that inequality leads to environmental degradation. The PSE is actually a type of green growth with two added radical social policies, namely a job guarantee program and working time reduction [45]. Degrowth, on the other hand, contains the PSE but also argues for downscaling economy. While all the three economic models have their own advantages and disadvantages, simulations of green growth, PSE, and degrowth have shown degrowth model to be most effective in tackling environmental pressures [45].
