Green economy as a form of economic development that is
environmentally friendly and sustainable
Dirgantara Wicaksono1
1S.Pd, M.Pd, M.M., Muhammadiyah
University of Jakarta, Indonesia,
bom2.dirgantara@hotmail.co.id
Abstract
Until now, there is no
research which analyzes society perception about the green products, so this
research will try to fill in the gap. This Study analyzed perception of
Borneo(Indonesian) society based on their demography, psychological, social and
cultural factors toward the green products. This research was as a study in
nature descriptive method. The result of this research indicated that
perception of Borneo society toward the green product is good enough. The group
of society that had high concerns to green product was housewife with the
middle economy class and has up to 40 years old. More over in the term of their
psychological factor, most of respondents had motivation to choose green
product and had enough good perception on the green product. In social factor
that the sureness of society on green product was very high. Lastly cultural
factors supported society to care on the green products. The change to a green
economy that values and invests in natural capital will help to drastically
reduce the negative tendencies, and at the same time supporting mitigation and
adaptation to climate change. Formation depends on the incorporation of the
value of natural resources into economic policies and private sector
decision-making. The model shows that the transition to the approach of alternative
and green economy that recognizes the value of natural resources is possible.
The potential benefits of such changes include poverty reduction, faster
growth, stronger local economies, and increased resilience to climate change.
In the long term, growth will increase more rapidly under a Green Economy
scenario where natural capital is treated on an ongoing basis. Green economy is
essential to ensure the growth and long-term economic development and
sustainable.
Keywords: Sustainable Economy, Green Product, Green Economy, Cleaner Production.
1.
Introduction
Lifestyle of modern
society has made the
development of highly exploitative
of natural resources and life threatening. Development focused on proven production growth led to economic
improvement, but failed
in the social and environmental. Call it, rising
greenhouse gas emissions, reduction of
forest areas as well as a variety of species extinction
and biodiversity. In addition it is the inequality
of the average income of residents of rich countries to poor countries. Green Economy can be interpreted simply as an economic concept which does
not harm the environment. Green Economy is one that
produces social equity and human well-being, but also significantly reduce the
environmental risks. The concept of green economy is
becoming increasingly prominent in discussions of environmental policy. Ongoing
financial crisis has supported the emergence of this topic, due to the
uncertainty on the sustainability of growth in the global economic system.
Where it will be discussed in
the context of sustainable development and poverty eradication. As we know the main principle of
sustainable development is "meeting the needs of the present without
compromising the fulfillment of the needs of future generations". So it can be said that the green economy is the main motor of sustainable
development. The concept of green economy is
expected to be a way out. Being a bridge between growth development, social
justice and environmental friendly and saving natural resources. Of course, the concept
of green economy will only
produce results if we want to change behavior.
2.
GREEN ECONOMY AS A FORM OF ECONOMIC DEVELOPMENT THAT IS ENVIRONMENTALLY
FRIENDLY AND SUSTAINABLE
2.1. Green
Economics
Green economy is one that results
in reducing environmental risks and ecological scarcities. Green economics is
not just about the environment. Certainly we must move to harmonize with
natural systems, to make our economies flow like sailboats in the wind of
ecosystem processes. But doing this requires great human creativity, tremendous
knowledge, and the widespread participation of everyone. Human beings and human
workers can no longer serve as cogs in the machine of accumulation, be it
capitalistic or socialistic. Ecological development requires an unleashing of
human development and an extension of democracy. Green economics means a direct
focus on meeting human and environmental need Social and ecological
transformation go hand-in-hand. Green economy is an economy or economic
development model based on sustainable development and a knowledge of
ecological economics, green economy as advocated by the UN, is not a new
approach at all and is actually a diversion from the real drivers of
environmental crisis (Spash, C.L. 2012. Green Economy, Red Herring.
Environmental Values, vol. 21, no. 2, 95-99).
2.2. Can the community
implement a green economy? Are we afford to not implement it?
Finding the answer is an
important step in gathering
the political will and consensus for change
challenges and priorities towards economic changes
that are unavoidable.
Home to approximately 6% of the world's biodiversity, the Heart of Borneo (HoB) is one of the richest natural treasures hidden in the world. HoB forests cover most of the upper and middle parts of the river from 29 watersheds and provide important ecosystem services across an area of 54 million ha, more than 70% of the area of Borneo, which is beneficial to more than 11 million people. HoB's natural wealth has social and economic value that is very large at the local, national and global. This includes social values associated with traditional knowledge and sacred places, the value of biodiversity and ecosystems in creating resilience to climate change and the value of ecosystem products and services used as inputs in various economic sectors of Borneo, but a lot of the value of natural resources HoB is still not recognized.
Home to approximately 6% of the world's biodiversity, the Heart of Borneo (HoB) is one of the richest natural treasures hidden in the world. HoB forests cover most of the upper and middle parts of the river from 29 watersheds and provide important ecosystem services across an area of 54 million ha, more than 70% of the area of Borneo, which is beneficial to more than 11 million people. HoB's natural wealth has social and economic value that is very large at the local, national and global. This includes social values associated with traditional knowledge and sacred places, the value of biodiversity and ecosystems in creating resilience to climate change and the value of ecosystem products and services used as inputs in various economic sectors of Borneo, but a lot of the value of natural resources HoB is still not recognized.
Many natural capital value of the HoB including his pivotal role in the
economy, in support of human well-being is widely and in creating resilience to
climate change are still under-recognized. Traditional economic measurements such as Gross
Domestic Product (GDP) does not
include a role in determining the
productivity of natural capital, while many
products and ecosystem
services market shortages
and price. Improving human well-being and social equity
while reducing environmental risks
and ecological scarcity
significant.
Based on the
measurement of conventional GDP, investment EH 2030 will generate U.S. $ 1.7
for every U.S. $ 1 invested. Breakeven point (taking into account the entire investment) will be achieved by 2024. If measured
by GDP Green - which includes the contribution of natural supply and welfare
practices and take into account the impact of GDP over the nature of production
and capital investment EH - 2030 will generate U.S. $ 4.2 for every U.S. $ 1
invested.
When the investment was introduced, the main difference can be seen between the net profit of the investment using the conventional computation of GDP and green GDP approach. By using green GDP, earnings positive direct investment. Green GDP in the simulation grow faster and more sustainable than conventional GDP.
An additional benefit of the natural and unavoidable costs of the damaged ecosystem services, facilitated by investment EH, was 161 % higher than the investment itself. This is partly driven by two important changes arising from the success of the HoB 's natural capital maintenance :
Avoided Costs : reduced risk and damage from floods and droughts , also reduces interference with roads and infrastructure, the transport capacity of the river is higher, and the reduction of sludge.
Additional benefits : increased production of non-timber forest products, ecotourism, biodiversity is higher, more carbon is stored and enhancement of ecosystem function.
When the investment was introduced, the main difference can be seen between the net profit of the investment using the conventional computation of GDP and green GDP approach. By using green GDP, earnings positive direct investment. Green GDP in the simulation grow faster and more sustainable than conventional GDP.
An additional benefit of the natural and unavoidable costs of the damaged ecosystem services, facilitated by investment EH, was 161 % higher than the investment itself. This is partly driven by two important changes arising from the success of the HoB 's natural capital maintenance :
Avoided Costs : reduced risk and damage from floods and droughts , also reduces interference with roads and infrastructure, the transport capacity of the river is higher, and the reduction of sludge.
Additional benefits : increased production of non-timber forest products, ecotourism, biodiversity is higher, more carbon is stored and enhancement of ecosystem function.
The
use of conventional GDP, at
first just a cost, which is why the return on investment starts at -100%.
Over time, the growth
of GDP, net investment income increased.
Both are measured by conventional GDP
and green GDP,
Green Economy scenario shows a slight decline in profit potential in the palm oil sector because
of lower yields on
degraded land, offset by a better ecosystem (which
leads to cost reductions for businesses,
households, and government),
greater income from
non-timber forest products and tourism, higher
yields and energy
consumption in the country is lower (especially fossil
fuels), which enables energy costs decreased below BAU (Business As
Usual) and export
increases beyond the base line conditions. Biodiversity-based business
development and expansion of
innovative green sectors
also contribute to improved economic performance.
The
study showed that investing in
natural capital will be:
• Reduce future costs to businesses,
households, and government.
• Increase future revenue from the
green industry and biodiversity-based.
• Improving yields and reducing
energy consumption in the country.
• Supporting economic change towards a more just and equitable.
3. GREEN NATURE OF ECONOMIC SCENARIO
3.1. Comprehensive
change impact reduction with logging practice (Reduced Impact Logging / RIL) keeping
carbon, reduce erosion and sedimentation river
Approximately an additional 115 million tons of carbon (tC) can be saved by implementing RIL in 158 timber concessions. With the improvement of timber management practices, about more than 19 tons of carbon (tC) per hectare can be saved compared with the existing concession management practices. Based on the social costs (that is damage to the global community) of these emissions, the social value of carbon storage of nearly U.S. $ 4 billion. In the Mahakam river basin, analysis of InVEST showed that timber management can better improve sediment retention in 2020 to nearly 900.000 tonnes across 49 timber concessions in the basin, by avoiding erosion of approximately 37 tons of soil per hectare per year.
3.2. Scenario green economy generates
higher carbon stock compared BSB - projection reduction reduces
carbon stock
Based on the projected loss of forest cover of 3.2 million hectares, the
difference between the carbon stock BAU scenario and the Green Economy is of
1.2 billion tonnes of CO2e, 23% of which is contributed by changes in land use
in the HoB. Assuming a carbon price of U.S. $ 2/ton and U.S. $ 15/ton, the
total value of projected reductions in carbon stocks under a Green Economy
scenario is between U.S. $ 2.4 billion and U.S. $ 18 billion.
3.3. Scenario green economy improving soil function
Intervention green economy also improves the soil's ability to perform its
functions in a managed natural ecosystems and sustainable. These functions among others, include the storage of carbon in
the organic matter, the soil's
ability to hold water, the flow of nutrients and soil erosion control.
3.4. Scenario infrastructure green
economy ecology produces more effective
When the river transport system is no longer maintained because of mass
transport have used other infrastructure, local communities suffer as a result impact on their mobility. For
them, the river transport system is the cheapest means of transport, and in
some cases even be the only means of transportation. BAU scenario shows the tendency of mud and sediment buildup worsened, requiring additional infrastructure investment (for transport and energy in some specific cases analyzed) both for additional treatment or a substitute for building construction lost ecological infrastructure (such as reduced use of the river). However, maintaining
ecosystem through the intervention HoB green economy will have a positive
impact on the watershed. Sediment retention capacity will be increased due to
the reduced residue, landslide and
mud buildup.
3.5. Green economy scenario ensuring the future revenues from natural capital improvement and land management
Green economy approach allows the governments in the region to take advantage of a valuable opportunity HoB as soon as the green markets and mechanisms that are being developed under the United Nations Framework Convention on Climate Change (UNFCCC) and other international initiatives running. Research shows that the HoB area produces many benefits of ecosystem services with local, downstream, and widely global will be maintained under a Green Economy scenario. Green economy produces protection against ecosystem services that benefit economies and societies of Borneo, as well as global stakeholders. Type of policy used to achieve a green economy will be important in determining the type of investment that will be done and the incidence of costs and benefits will be paid and who gets the benefit. These results form the basis of discussion regarding investment policies, policies and incentives that will be enforced by the central and local governments.
To develop this scenario, efforts were made
to be more extensive,
particularly in the collection of
data in a systematic verification of
the relationship between ecosystem functions and benefits at the local
level with strong
involvement of stakeholders at the local level is needed. The findings can then be
used to actively support the economic policy-making on natural capital HoB to
create socio-economic benefits and environmental, as well as cross-border
synergies.
3.6. Positive impact on growth in the green economy
scenario
In the BAU scenario economic growth and short-term private gains associated with the loss of natural capital and the public over the loss of the various sectors that depend on biodiversity and ecosystem services. Reduction of natural capital charge on the community and the ability of natural capital to support economic growth was reduced every year. In the Green Economy scenario, the sustainable management of natural capital causes an increase in value by net profit increased for current and future generations. Maintaining forest cover and forest management improvements will enhance biodiversity, carbon storage and soil function. Resulting in higher revenues from forest products and ecotourism. Expenses can be avoided by keeping the hydrological functions (water supply, water quality, sediment retention, flood prevention, and the maintenance of ecological infrastructure such as transport stream) reducing the destruction of roads, reduce the frequency of flooding, and improve soil function.
In the BAU scenario by 2020 the cost of the
environment over economic growth is expected to
exceed the income from natural capital. In the Green Economy scenario, an investment of 0.6% of
GDP per year
is needed to ensure economic growth and environmental
quality of life until 2020.
Investment needs will decline over time in conjunction with the creation of progress. Different from the BAU scenario,
in the long term, growth will increase more rapidly under a Green Economy
scenario that preserve natural capital in a sustainable manner.
Growth under a
Green Economy scenario assessed
by conventional and
green for the calculation of GDP. Under a Green
Economy scenario, both conventional GDP calculations
and the Green Economy, will grow fast or faster (and more
sustainable) than GDP in the BAU scenario. Profits continue to rise under a Green Economy scenario, while the BAU
scenario increasingly slowed GDP growth rate in the medium and long term.
4. ACKNOWLEDGEMENT
In imperdiet, lectus in societate, Cor Borneo Oeconomicarum sustineri. Thank you Heart of Borneo Project.
In imperdiet, lectus in societate, Cor Borneo Oeconomicarum sustineri. Thank you Heart of Borneo Project.
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