The Recession, Environmental Policy and Ecological Modernization – What's New about the Green New Deal?

Abstract

This paper discusses the impact of the Great Recession on environmental policy. We argue that the recession has a specific environmental policy dimension by challenging underlying assumptions of the dominant model of environmental policy – ecological modernization (EM). Due to its Schumpeterian connotations, the concept of EM is more vocal on the connection between the economic crisis and environmental policy than most alternative approaches. When a ‘Green New Deal’ became a core element of fiscal stimuli packages, it was widely based on an EM discourse. However, actual ‘green’ stimulus policies have proved more problematic, as is shown for energy-related and car-related measures in the USA, the United Kingdom and Germany. On reflection, while boosting environmental efficiency investments, the ‘Green New Deal’ has so far failed to address underlying vulnerabilities of the EM model.