Green Growth Strategies: How ESG Metrics are Reshaping Environmental Economics

Chuandi Ma

doi:10.54097/fbem.v12i2.14882

Authors

Chuandi Ma

DOI:

https://doi.org/10.54097/fbem.v12i2.14882

Keywords:

Environmental Economics, ESG Metrics, Green Growth Strategies, Sustainable Development, Economic Decision-Making.

Abstract

This article examines how Environmental, Social, and Governance (ESG) metrics are reshaping environmental economics and driving green growth strategies. It begins by elucidating the concept of ESG metrics and their significance in the modern economy. The article then analyzes the role of ESG metrics in environmental policy and economic decision-making, showcasing how various companies and industries are transforming their strategies based on ESG metrics. It further explores business strategies that utilize ESG metrics to drive sustainable growth, including the role of technological innovation in enhancing ESG performance. Additionally, the article discusses the challenges and opportunities of integrating ESG metrics into traditional economic models and the potential criticisms ESG metrics might face in environmental economics. By examining how different countries and regions adopt ESG metrics and predicting the future role of ESG in environmental policies and economic strategies, the article highlights the potential of ESG metrics in shaping the future of environmental economics.

Downloads

Download data is not yet available.

References

Schaltegger, S., & Hörisch, J. (2017). "In Search of the Dominant Rationale in Sustainability Management: Legitimacy- or Profit-Seeking?" Journal of Business Ethics, 145(2), 259–276. This article discusses the motivations behind sustainability management in businesses, balancing profit-seeking with legitimacy in the context of ESG.

Friede, G., Busch, T., & Bassen, A. (2015). "ESG and financial performance: aggregated evidence from more than 2000 empirical studies." Journal of Sustainable Finance & Investment, 5(4), 210-233. This comprehensive study analyzes the relationship between ESG performance and financial performance, drawing on a large number of empirical studies.

Bauer, R., Koedijk, K., & Otten, R. (2005). "International evidence on ethical mutual fund performance and investment style." Journal of Banking & Finance, 29(7), 1751-1767. This paper provides an international perspective on the performance of ethical mutual funds, relevant for understanding the investment aspect of ESG metrics.

Esty, D. C., & Winston, A. S. (2008). Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage. Yale University Press. This book explores how companies can use environmental strategies to innovate and create value, offering insights into the corporate strategy aspect of ESG.

Porter, M. E., & Kramer, M. R. (2011). "Creating Shared Value." Harvard Business Review, 89(1/2), 62-77. Porter and Kramer discuss the concept of creating shared value – generating economic value in a way that also produces value for society, which aligns with the principles of ESG.

Dasgupta, P., & Heal, G. (1979). Economic Theory and Exhaustible Resources. Cambridge Economic Handbooks. This seminal book in environmental economics provides foundational knowledge on how economic activities impact natural resources, relevant to the environmental aspect of ESG.