Despite green market thinking being here formally since 2012 Rio +20 conference finding a definition of a true green market is hard to find even in major publications dealing with green growth and green economies…the term green market a kind of disappeared as we moved towards an environmentally friendly world after 2012, and because it was left unattended in development and economic thinking circles this has led since then to confusion and misused of the term.
Many forms of environmentally friendly markets are called green markets, when they are not. For example, a Google search of what is a green market leads to the following definition in Wikipedia:
--The term "green market" refers to the fact that the resold goods are put back into productive use, which is the most environmentally friendly use of used or discontinued products--
But that is a definition of one type of environmentally friendly market, but that is not the definition of a green market. And this lead to the questions, what is a green market? What is not a green market?. Please feel free to comment, what do you think a green market is and/or what it is not; and why?
Green marketing is the marketing of environmentally friendly products and services. It is becoming more popular as more people become concerned with environmental issues and decide that they want to spend their money in a way that is kinder to the planet.
A green market occurs when all the principles of sustainable development, social environmental (ecological) responsibility, pro-ecological reforms of implementing eco-innovations in economic processes, etc. are met. The green market is also an important element of the pro-ecological transformation of the traditional brown economy into a sustainable green economy / circular economy. A green market occurs when both sides of the market, i.e. demand and supply, represent economic entities and / or citizens who operate in accordance with the principles of sustainable development. Best wishes,
Dariusz Prokopowicz
Dear Muawya, good day.
The nature of your comment is why I asked the question; and I am writing an article specifically about this subject as there is clear confusion about this concept as it has been left out in the development agenda discussions by major players/thinkers....
Green marketing is not green markets,,,,
Green marketing goes one to one with different types of environmentally friendly markets....It goes one to one for example with the example I shared in the introduction of this question about reuse and its promotion/sale,,,,
Can you think about one reason why green marketing is not the marketing of green market based production and consumption?
Thank you for writing!
Dear Dariusz, I really appreciate your comment, but that description/definition does not capture the nature of green markets,
What is a traditional market? It is a market cleared by the traditional market price, here environmental costs are externalized and not accounted for in the pricing mechanism of the market.
What is a green market? It is a market cleared by the green market price, here environmental costs are internalized and are accounted for in the pricing mechanism of the market.
Then, in between them you have the dwarf green markets, which a price higher than the traditional market price but lower than the green market price
You need to find a way to reconcile your definition and ideas with these ideas above....as we need to come up with and advance ideas that can be easily defend analytically to make sure our ideas are consistent with the theory-practice consistency principle.
Thank you for your comment;
Respectfully yours;
Green market in agriculture could be explained as a market which deals with fresh fruits and vegetables and moreso organic. Such green markets should also have perishables waste disposal system.
Dear Suresh, thank you for your comment.
What determines the quantity to be produced and consumed is the price, whether is the agricultural market or not. And the type of costs reflected in the market price and to be passed to consumers determines the type of market.
If only the economic costs associated with production are passed to consumers, then we have a traditional market. If both the environmental cost and the economic cost of production are passed to consumers, then you have a green market. When a green consumer pays the green price, he is paying for both, the economic cost and the environmental cost of production.
Markets or industries with low to medium environmental cost of production were supposed to be the first ones to be in line to be transformed into green markets by means of environmental cost internalization, but that never happened.
Based on the above discussion, do you think that agricultural market, producing any of those products, is a green market or it is an environmentally friendly market? What do you think?
According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including-
1. Product modification,
2. Changes to the production process,
3. Packaging changes, as well as
4. Modifying advertising.
Bipllab,. thank you for taking the time to comment.
The question is about what is green markets and what is not, it is not about green marketing, but they are related in the sense that there can be true green marketing and current green marketing....
Green marketing would have had its proper meaning if in 2012 Rio + 20 governments and businesses would have gone into setting up green markets as they said they would do to move to a world under green economies and green economic growth, then green marketing would have been true green marketing as it would be business of distributing, promoting, selling, and on so on green market products....to green consumers....
The key is green market pricing, not traditional market patching....
As indicated above, green marketing is not a market, it is a tool, if there are no green markets, there can not be true green marketing....so what we know as green marketing now is not related to perfect green market thinking and marketing tools...
Environmentally friendly markets may not be green markets while green markets are always environmentally friendly markets...
Do you have your own view on what is a green market and what is not?
Have a nice day
Green market is market for any product (could be good or service) that is environmentally friendly and provides low impact on environment
Donny, thank you for your comment.
Notice, providing low impact on environment is what makes your definition environmentally friendly, and therefore green leading to a redundancy,,,,
It is easy to state analytically and graphically the structure of markets to have a science based understanding of what they are and what they are not,,,
Do you have an analytical way to show that your green market is a true green market? If yes, can you please share it,
Dear friends, in case you have not seen them, I am sharing the following papers related to the question with the only intention to share ideas, as they have some good food for thoughts:
Beyond Traditional Market Thinking: What is the Structure of the Perfect Green market?
https://www.researchgate.net/publication/302025169_Beyond_Traditional_Market_Thinking_What_is_the_Structure_of_the_Perfect_Green_market
From Traditional Markets to Green Markets: A Look at Markets Under Perfect Green Market Competition
https://www.researchgate.net/publication/330617155_From_Traditional_Markets_to_Green_Markets_A_Look_at_Markets_Under_Perfect_Green_Market_Competition
Sustainability thoughts 103: How the shift from traditional markets to green markets would have looked like had the 1987 Brundtland Commission recommended then an environmental sustainability fix?
https://www.researchgate.net/publication/339926878_Sustainability_thoughts_103_How_the_shift_from_traditional_markets_to_green_markets_would_have_looked_like_had_the_1987_Brundtland_Commission_recommended_then_an_environmental_sustainability_fix
I suspect that there can be no ignoring of the basic need to remedy the three fundamental flaws of the man-made false economy: institutional hierarchy, theft of the commons and usury. Otherwise, we participate in a sensitive palliative in a dying system and neglect the only basic curative.
Environmental sustainability is the key factor for products in green marketing. Product, Pricing, Distribution and promotion are the vital elements for the green marketing as well. Sustainable materials and energy efficient products get a score over the others. Recycling of package material additionally wins the hearts of the customers.
Dear Peter, thank you for reading and writing. but your comment falls outiside the question,
Do you have any on What is a green market? What is not a green market?. If yes, please share them.
Respectfully yours,
Dear A.K. Thanks for writing too, but the question is not about green marketing, it is about what is a green market and what is not.
To avoid going away from the core of the question, I will leave it here.
Respectfully yours;
While I do agree with you, the basic aim of both are in fact, the same - Environmental benefit. Green market could be on par with black market created sometime earlier. But, the ethics are different - computer parts for example when recycled and used in the newer products fit enough for the customers to buy would get categorized under Green Market.
Dear A.K. Thank you for your comment.
It is not clear to me what "both" means, is that green marketing and green markets", one is a market that aims at making pollution reduction in production profitable, the other is a tool with the word 'green" in it... Are you familiar with the concept of "greenwashing"?.
I am glad to see that in the general things we agree.
Respectfully yours;
Dear A.K, it seems we are moving away from the core of the question so if you have not more comments about green markets, and what they are or not, let's leave it here and perhaps others may want to share their views.
Respectfully yours
Lucio
Dear Friends, I made a related question before in researchgate calling attention to the nature of true green markets that some of you may find interesting and perhaps may want to comment there, the question and link is below:
Food for thoughts: Is the green market a dwarf market?
https://www.researchgate.net/post/Food_for_thoughts_Is_the_green_market_a_dwarf_market
Dear Friends, through linking development and market theory to the theory-practice consistency principle you arrive to the following general implications:
Implications:
The discussion above has the following main implications: 1) Traditional market models do not exist under traditional theory-practice model inconsistency; 2) Green markets models do not exist under green market model theory-practice inconsistency: 3) The traditional market model cannot shift to the green market model under green market model theory-practice inconsistency; 4) Traditional growth does not exist outside traditional markets; 5) Green growth does not exist outside green markets; 6) Traditional growth cannot shift to green growth under green market model and green market component theory-practice inconsistency; 7) Traditional economies do not exist outside traditional markets; 8) Green economies do not exist outside green markets; and 9) traditional economies cannot shift to green economies under green market model and green market component and unseen market component theory-practice inconsistency.
You can find some food for thoughts related to what is and what is not green market in the following unpublished paper to come up next year:
Sustainability thoughts 130: Can green economies and green growth exist without green markets? If not, why not? What is the current main development implication of this?
Article Sustainability thoughts 130: Can green economies and green g...
Respectfully yours;
Lucio
Dear A.K., I do appreciate your comment.
It seems I was the only one who could see before 2012 and after 2012 that the solution to save pure capitalism/Adam Smith's traditional market from its environmental sustainability problem had to be a science based solution through perfect green market thinking as non-science based short cuts as dwarf green markets or environmental externality management based markets should be expected to sooner or later backfire as since they need ongoing and increasing government intervention to exist when they collapse the blame will fall on the governments implementing them not on the pollution producing producers and consumers....so there is no market incentive to make pollution reduction profitable and worthy for producers and consumers respectively in non-science based markets.
These ideas will be ignored for a while ny decision makers locally and globally, but in time of dwarf green market collapse or signs of collapse these ideas may come handy....
A.K. you may find a paper that was accepted for publication today, one that is so original that the peer reviewed process took longer than usual to accept it, it brings the discussion about green markets towards green pareto optimality after paradigm shift from traditional markets to green markets,, You can check when you have time...
Sustainability thoughts 125: Why is pareto efficient in traditional markets outside green pareto efficiency in green markets? What is the structure of green pareto optimality? What are the implications of this?
Article Sustainability thoughts 125: Why is pareto efficient in trad...
This scientific contribution helps to understand the differences. I think you can answer your question. I hope you find it useful.
- Analyzing manufacturers' impact on green products' market diffusion – the case of electric vehicles
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