Handbooks of Research Methods and Applications series
Edited by Matthias Ruth
Chapter 16: Analyzing green growth: integrating models to assess green economy – methods and applications to Mexico
Many countries, both industrialized and developing, have been underperforming recently in terms of gross domestic product (GDP) growth. Lack of a formal policy to promote specific sectors and low private investment, both domestic and foreign, are crucial causes of such performance. Hidden costs such as poor infrastructure or growing insecurity lead to low investment and thus lower growth (Batra et al. 2003; Dollar et al. 2003). Other countries have had acceptable to significant GDP growth, but this has not necessarily translated into development because, even though growth may generate more opportunities for some people, it may also cause the deterioration of living conditions of others by requiring more resources leading to more pollution and depletion. Economic growth may then leave large parts of the population exposed to larger inequality, economic and social exclusion, poverty, and to a deteriorated environment where no true development, understood as an improvement in living conditions, is achieved. This debate of growth versus development has been present in policy and research agendas for many years. One notable case is Daly et al. (1989); another is Georgescu-Roegen (1971), but there are many more. They state that the main issue is development rather than growth.
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