10222
OECD: Green Tape Not Damaging Economy
World Economy

OECD: Green Tape Not Damaging Economy

Economists are at their best when they challenge conventional wisdom and debunk the spurious claims of vested interests. The boffins at the Organization for Economic Cooperation and Development (OECD), one of the world’s top research outfits, have done just that with a ground-breaking analysis of the economic effects of environmental policies, often derided as “green tape.”
Conventional wisdom says green tape is a necessary evil. The rules are needed to protect the environment but they come at an economic cost, BussinessDay reported.
Businesses claim there are too many restrictions. Green tape has become a by-word for burdensome regulations that erode profits and cost jobs. The Abbott government seems to agree – its election manifesto said that green tape, and its big brother “red tape”, were excessive and promised “sensible whole-of-government initiatives that will assist in reducing red and green tape.” But the economists at the OECD have made a surprising discovery: green tape might not cost nearly as much as politicians and business leaders claim. The Organization has created an index that calculates the explicit and implicit cost of environmental policies. Its economists used this index to assess the strictness of environmental regulations across 24 wealthy OECD members – including Australia – between 1990 and 2012 and to measure the effect of those regulations on productivity.
They found the strictness of environmental policies has “increased significantly” in all the countries over the past two decades. But that increased stringency has not harmed productivity growth or productivity levels. In fact, new green regulations “may translate into a permanent increase in productivity levels in some industries.”

Short URL : http://goo.gl/Yl6Uwi

You can also read ...

Philippines Rating Upgraded
Fitch Ratings on Monday upgraded Philippines’ credit rating to...
Beijing’s growing determination to curb debt-financed growth has already triggered a sharp sell-off in China’s government bond market and is fuelling concerns that the economy will slow, thus crimping global demand for commodities.
Inflows into emerging market bond and equity funds have been...
UNDP Says BRI Can Create Sustainable Growth
The Belt and Road Initiative has tremendous potential for...
Diverse Views Fuel Bleak Prospects for WTO Meeting
The World Trade Organization’s Buenos Aires meeting commenced...
Hackers Hit Major ATM Network
A previously undetected group of Russian-language hackers...
Will Cryptocurrencies Replace Dollar in Oil Trade?
The gradual acceptance of digital currencies, with major...
Base metals remain vulnerable to market factors.
The market for base metals is projected to grow at a robust...
Cboe tweeted that nearly 1,000 contract trades had been placed after two hours of initial trading.
Bitcoin has landed on Wall Street with a bang. Futures on the...

Trending

Googleplus