The Global Green Economy: A Review of Concepts, Definitions, Measurement Methodologies and Their Interactions

The Global Green Economy: A Review of Concepts, Definitions, Measurement Methodologies and Their Interactions

Lucien Georgeson
Mark Maslin
Martyn Poessinouw

https://doi.org/10.1002/geo2.36

Retrieved from: RGS-IBG

Mitigating environmental degradation and climate change relies on the collective adjustment of economic systems on a global scale. The development of the green economy concept evolved from a 1989 blueprint into a central policy framework popularized after the 2008 financial crisis. This framework positions economic recovery and environmental sustainability as mutually reinforcing, aiming for a transition to low-carbon and resource-efficient societies.

This review identifies the misalignment between high-level policy goals and technical tracking tools, the reliance on rigid industrial classifications that miss modern green innovation, and a lack of data on social equity or natural capital. It makes four overarching recommendations for improving measurement for green economy transformations, including cheaper, faster and more widely available data, and broader frameworks for measuring economy–society–environment interactions.

Current green economy definitions are categorized into three distinct theoretical frameworks: weak, transformational, and strong. Weak definitions view economic growth as fundamentally positive but needing to be more inclusive without altering existing structures. Strong concepts advocate for radical shifts, including de-growth, to address ecological scarcity. The transformational green economy acts as a middle ground, calling for explicit political interventions to shift systems toward alternative development pathways that prioritize inclusive change.

Measurement of the transformational green economy is essential for tracking progress and ensuring policy slogans translate into action. Existing approaches often suffer from a misalignment between high-level policy goals and technical tracking tools, a reliance on rigid industrial classifications that miss modern green innovation, and a lack of data on social equity or natural capital. Effective monitoring requires a feedback loop where strategies inform policy frameworks, which are then evaluated through specific measurement frameworks to provide an evidence base for sustainable development.

International measurement standards, such as the UN System of Environmental-Economic Accounting, provide a multipurpose framework for tracking interactions between the economy and the environment. However, these standards can favor weak concepts by focusing narrowly on environmental protection costs rather than broader social impacts. Traditional data collection methods, like the Environmental Goods and Services Sector framework, often struggle with capturing the full extent of green activity due to rigid sectoral definitions and national capacity constraints.

Alternative measurement approaches are necessary to provide a more comprehensive view of economic-society-environment interactions. Composite indices, such as the Genuine Progress Indicator, attempt to simplify complex realities by weighing economic, environmental, and social factors together. Additionally, the use of transactional data offers a more dynamic way to define the environmental status of different sectors and track transformations across various scales.

To improve the measurement of green economy transformations, four overarching recommendations are proposed. First, establishing better measures of progress beyond GDP is required to better reflect human wellbeing. Second, broader measurement of economy–society–environment interactions must capture complex relationships rather than presenting indicators in isolation. Third, better economic measurement of green economy transformations should improve how the scale of environmental shifts is tracked. Finally, exploring alternative measurement approaches, such as Earth Observation and transactional business data, can provide cheaper, faster, and more widely available information for systemic change.

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