The consumption of goods and services have increased drastically since ancient times. This has caused the economy of the world to develop at great leaps. The age of industrialization was a big win in that regard. The usage of coal and later oil have provided the possibility to power great machines and increase the production of goods to heights never seen before. Only later when the first signs of pollution have been noticed, people have realized that industrialization has a big impact on world we live in. Industrialization is important for the economic growth and development of the society but has negative effect on the environment. It can cause 5 main disadvantages: climate change, health problems, air pollution, water pollution, extinction of the endangered species and many other adverse effects. People have tried to clarified why it is happening and the interesting fact is that they often notice that numbers 555 is related to the environment. The best meaning of it could be found in meaning of 555.
These negative effects were mostly discovered after years of industrial and agricultural changes while disregarding the impact it caused to the nature. The era of industrialization, with all of its benefits and faults has made the people want more and consume more. The pollution produced as a side effect of it is viewed as unfortunate by the consumer but understandable. This view cannot be changed easily, and consumption will not stop but only increase in the future as a consumer culture is rooted deeply in the western side of the globe since the 16th century (McCracken 1985). This realization was the beginning of a new form of economics later called Green economy. As this particular field is still in its infancy no clear meaning is provided.
The name Green Economy can have a lot of ways to interpret it. As a form of economy its goal is to improve the well-being of humans and social equity. This means that economic growth is still very important. Issues like poverty, age difference, gender equality and country resources still need to be addressed. Although these challenges are difficult to solve when using every means possible, even with the disregard for the environment, green economy tries to view the problems from a different angle, with the environment in mind(Pearce,555).
“The combined forces of global economic recession, humanly induced environmental change and stark social inequalities have led to international calls for a radical transformation of current development practices and transitions towards a green economy”(Davies, 2013) .Prominent 5 green economists such as Molly Scott Cato, Karl Burkart and Lynn Margulis define green economy as one that supports a peaceful interaction between humans and the environment, while trying to meet the needs of both at the same time. It is believed that all economic decisions should be made with the environment and ecological conditions in mind, that natural resources, biodiversity of the world should have an economic value and support an interconnected system between the environment and humans. Economy is viewed as part of the environment and not separate from it. Which is why the aim is to reduce all environmental effects and risks associated with the economy, while simultaneously ensuring sustainable development.
The most recognized and authoritative definition of green economy comes from United Nations Environment Program:” …one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. It is low carbon, resource efficient, and socially inclusive” (UNEP, 2011). Other institutions and organizations have also tried to define the term Green economy. The Organization for Economic Co-operation and Development focusses the meaning on more economic merit. Green economy is defined as promoting economic development and growth, while simultaneously taking care of the natural resources so that they continue to be useful in the future (Organization for Economic Co-operation and Development, 2011). On the other hand, the South African Department of Environmental Affairs interprets that green economy should separate the natural resources form the economic growth (National Strategy for Sustainable Development, South African Department of Environmental Affairs, 2011) The authors of the book Global “Green Economy and Environmental Sustainability: A Coopetitive Model” David Carfì and Daniele Schilirò argue that nature and its resources is finite and the self regeration is limited.
All authors agree that Green economy has to be a form of economy that supports interaction between humans and the environment, with the benefit to both in mind. Our environment is recognized as one of the resources that need to be protected for humans to thrive and that the planet has a finite amount of resources.