DOI: 10.36347/sjebm.2016.v03i10.005

Pages: 551-559

This paper articulates the need for transition to an inclusive sustainable economic growth through the green economy concept.Scholars for decades have been focusing on the pursuits of development that are restricted to the measure of economic variables (Gross Domestic Product, Per Capital Income, etc.) without adequate consideration for the environmental implications of these variable interactions. This conventional approach to development is called brown growth, that is, a development approach that fails to account for negative consequences of economic production and consumption (World Bank, 2013; Dowarkasing, 2013). Practically, addressing the demands of economic development, unemployment and poverty alleviation remain tough challenges globally. Contrary to the exclusive economic-centric fiscal policy, there has been growing recognition of fiscal policy reforms that account for environmental conservation while targeting sustainable development through an inclusive and green economy. The pursuit of green economy provides for fiscal reforms that account for environmental sustainability. Accordingly, at the United Nations Conference on Sustainable Development in Rio de Jarieno (2012), Member States recognized green economy as one of the essential mechanisms available for achieving sustainable development. Fiscal reforms that ensure social equity and leads to substantive reduction in environmental risks are the most desirable for developing countries.