The Green New Deal and the Development Conundrum in India

Abstract

Growth and development have always been the target of the nations and economies tend to achieve this target via various processes directed towards the demand-supply equilibrium. However, the narrow concept of achieving this demand-supply equilibrium with targeted growth, measured nominally, has undergone a revival in terms of more comprehensive concepts like sustainability linked to development. The proposed Global Green New Deal is outcome of such deliberations and is being mooted as a potential policy tool which may settle the Great Development Dilemma. Understanding this concept of sustainable development in terms of ethical foundations is hence imperative to settle few questions related to dynamics of growth and development especially in India.

The basic aim of this paper is to explore Economics of environment in terms of GND and linked factors which alters the pattern of development linked to sustainable growth. The paper, therefore, tends to study how factors like Arable land, CO2, Fertilizer Concentration, Green House gas impact Real GDP in India.  The time series analysis for the years 1990-2019, done with the use of ARDL models explain a negative long run relationship between GDP and Green house gases. Based on these results, this research deliberates upon the concept of Eco-Innovation as a sustainable tool of interaction on the production side. The paper also moots upon the effective role of government in providing impetus to growth via contributions in Green infrastructure. The ultimate target is to settle the question of environment directed development via a model which includes interplay of market forces along with extended active role of the State.