1945

Moving towards greener structural transformation

Under what conditions will countries promote enough technological change to induce environmentfriendly growth? Today’s countries had to pay a heavy price in pollution to pursue industrialization and economic growth. The question here is whether (lowand middle-income) countries industrializing in the 21st century will leapfrog and decouple their growth from pollution and the use of natural resources. Many firms have invested in technological change to increase their energy and resource efficiency, maximizing profits and also reducing pollution. But that type of technological change is not sufficient to overcome the scale effect of increasing world production.

Related Subject(s): Economic and Social Development
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