GREEN INVESTMENTS AND ITS INFLUENCE ON GREEN GROWTH IN RA: INTEGRATING ECONOMIC GROWTH WITH SUSTAINABILITY

Abstract

The main objective of this research is to explore the macroeconomic implications of green investment in the transformation to a green economy, while defining main sectoral priorities for investment allocation and underlining the short- and long-term macroeconomic effects of the “green” investment on the basis of which we can build possible scenarios for green transformation in the Republic of Armenia. For this purpose, we have examined the features of the new taxonomy of investments proposed in the “LowGrow SFC” model which was developed based on the Canadian economy. We propose to classify green investments in Armenia: “productive” or “non-productive”, “additional” and “non-additional”. Within the framework of the above-mentioned logic of presenting investments according to their macroeconomic impacts, it has been highlighted the main directions of the RA economy that can contribute to the growth of the green economy. In the it is suggested two possible Scenarios for Armenia’s green transformation, each of which takes into account different levels of investment, policy actions, and technological deployment. Which scenario is most effective for Armenia depends on the ability of the Armenian economy to attract green investments.