What Is the Green Economy?
The term ‘economy’ is used broadly to cover a number of economic activities and concepts. At its most basic, it means the exchange of goods, services, capital goods and financial resources for the purpose of maintaining a particular level of productive efficiency. In simple terms, an economy is a set of interactions, which include production, allocation of productive resources, consumption, investment, disposal and prices. In general, it’s defined as ‘a socio-economic domain that define the practices, goods, services, capital goods and financial resources used by various agents in the production, allocation and utilization of goods and services’.
A simple economy is the exchange of goods, services, capital goods and financial resources between households, producers and providers on the basis of market exchanges that take place within the marketplace. It is often compared with the theory of the demand-able goods, where production potential is determined by the current inputs available to the producers of those goods and services. The differences between this theory and the simple economy is that the market prices of the goods and services are not determined by the needs and requirements of the consumers, but are the result of the activities of large and small businesses that determine their relative prices. The theory of the demandable good, on the other hand, assumes that the production and inputs of goods and services are inputs into the production process of other firms, allowing the consumers of these goods and services to determine their relative needs. The simple economy, on the other hand, assumes that market prices are determined by the supply and demand of the goods and services at a particular date.
The green economy aims to increase the efficiency of economic activities through the use of natural resources. It is a form of economy that has evolved out of the practices of a conventional economy. It aims to regulate the production and allocation of natural resources, using various economic strategies. Unlike the traditional economy, the green economy attempts to improve the efficiency of economic production through the use of a knowledge-based economy.