Green Growth Models in the Periphery

The concept of green growth has become a cornerstone in shaping the global consensus on decarbonization. It posits that decoupling GDP growth from greenhouse gas emissions is feasible and can align with increased productivity, social inclusion, and economic development. This chapter critically examines this premise, questioning the notion of green growth as a universal solution. Instead, it advocates for a more nuanced theoretical framework to explore the limits and possibilities of growth in a decarbonizing world. Building on the literature on growth models—a pluralistic body of work bridging Comparative Political Economy and post-Keynesian Economics—we define a green growth model as a growth model in which sociopolitical forces converge to support growth that achieves meaningful carbon reduction through structural change. The chapter focuses on Latin America, highlighting the structural divergences between growth models in central and peripheral economies and the latter’s unique constraints. Drawing from growth model analysis and structuralist economics, the chapter contends that while central economies may harness technological innovation to achieve decoupling, peripheral economies encounter distinct challenges. These include international financial asymmetries, productive dependence, the role played by the state, and ecological imbalances. Each of these dimensions is analyzed in detail. Finally, the chapter identifies three stylized green growth models for Latin America within the global decarbonization context. It evaluates their potential pathways, implementation challenges, and possible implications.