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A Green Deal will not work without refocusing productivity

Karl Aiginger, (2020), “A Green Deal will not work without refocusing productivity”, VoxEU, 20 Ιανουαρίου

The new president of the European Commission, Ursula von der Leyen, has announced a ‘European Green Deal’ and the Commission has asserted Europe’s need to develop a new growth model to achieve climate neutrality. However, the Commission’s limited view of ‘productivity’ ignores the fact that raising labour productivity can raise emissions and accelerate climate change. Instead, this column argues that a welfare-oriented Green Deal needs to focus on resource and energy productivity, not raising labour productivity.

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