Next steps: enriching green growth advice Towards Green Growth? Tracking Progress suggests a number of updates to the Green Growth Strategy (Figure 4) and associated forward work priorities for governments, the OECD and other relevant institutions, to help better target future analysis and policy advice in support of government implementation efforts. Green growth implementation remains a work in progress; the priorities raised merit particular consideration from governments, but do not detract from the need to consider the full suite of measures outlined in the Green Growth Strategy in implementing reform.
Figure 4 – Forward work priorities to enrich green growth advice
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Enhance understanding of complementarities and trade-offs between economic and environmental goals, to better integrate environmental priorities into structural economic reform priorities.
Further work on the effects of environmental policy on international trade and relocation, investment and employment and production processes. Further ex-post policy evaluation studies to examine the consequences of environmental policies on households and firms. Further work to assess economic consequences of risks from climate change at regional and sectoral level, and to quantify feedbacks of air pollution and the link between land, water and energy. Further study the economic costs of health impacts of outdoor air pollution. Use cost-benefit analysis routinely and systematise it in policy design and project implementation.
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Enhance public trust in green growth by effectively addressing social impacts of reform, in OECD countries as well as developing and emerging economies.
Enhance understanding of how significant regressive effects of environmental policy are likely to be on households; analyse the impact of energy taxes on the affordability of energy at the household level; examine absolute measures of energy affordability as well as possible energy tax reforms; identify emerging best practices from experience to date including from a political economy perspective. Advance work on “second-best” policy instruments such as implicit pricing and regulatory approaches in recognition of the challenges currently associated with “first-best”, direct pricing mechanisms. Undertake work to develop more accurate projections of the size of likely structural changes in labour markets and potential labour market reactions at country level. Enhance understanding of likely impacts on the demand for working skills.
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