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GREEN ECONOMIC POLICIES

The economic systems we have developed in the industrial world have neither been able to generate sufficiently high employment nor a satisfactory state of the environment. A key to more sustainable development is long-term structural changes in the ways our economies work. There are no easy solutions, and many types of measures are needed. But using econmic instruments, for example,. changing price and tax systems to improve the functioning of our economies, is quite fundamental. We need «New Models of Development» making economic growth more labour intensive and environmentally friendly. A revenue neutral tax switch away from labour and towards the environment is an example of a measure that could improve both the incentives to employment and the environment.

The CSD work programme should explore how economic systems can be improved through economic instruments in general and changes in tax systems in particular.

Sigbjørn Johnsen, Norwegian Minister of Finance