Annotation: this work presents a study of the essence of the “green” economy and its importance for improving the well-being of people, its features in contrast to the traditional or “yellow” economy, investigated its relevance to the innovation economy, to the sustainable economic development, to the economic development and to the economic growth. It’s investigated the current level of development of the green economy in Georgia and its prospects. 

Introduction 

From the end of the 60s of the 20th century and the beginning of the 70s, humanity (society) begin to pay attention to the problems of environmental protection and the rational use of natural resources. In 1972, a world conference on nature protection was held in Stockholm, there was expressed a concern that at the current rate of economic growth, mankind was threatened a disaster. The conference had received program of “zero growth” that included both a decrease in economic growth and a population growth rate. Of course, that program was not destined to be realized and was not implemented. But concern for these problems has much more increased. In 1987, the report of the international commission on environment and development “our joint future” was distributed, in which a strategy of sustainable economic growth was proposed. Its essence was that continue economic growth should be continued to better meet the needs of the current generation, but without prejudice to future generations. In 1992, the Second World Conference on Environment and Development topics was held in Rio de Janeiro,there was also discussed and adopted the program –  “Agenda 21” in which the essence of sustainable development wastransmitted. In 2002, a high-level meeting was held in Johannesburg, where the results of decisions taken at the Rio de Janeiro conference were reviewed and future plans were outlined. In 1992, after 20 years from the conference, in 2012, in Rio de Janeiro again was held a conference “Rio+20”, at which were discussed issues of a “green” economy, sustainable development and poverty. Transition to sustainable economic development involves the solution of such global problems that are associated with: the number of world population, economic growth,replacement of non-renewable resources with alternative resources, preservation of conditions for reproducing renewable resources, reduction of environmental pollution. The solution to these problems is mainly supported by the “green” economy. 

“Green” economy and “Brown” economy 

Term “green” economy was first used in the work “Blueprint for a Green Economy” (David… 20013). The concept of green economy is transferred in the document of Rio de Janeiro conference dedicated to the sustainable development “future we want”. (Future …2012)

As United Nations Environment Program (UNEP) defines “green” Economy is an economy that provides growth of people's well-being in the long term and reduces inequalities in order to enable future generations to avoid environmental and its impoverishmentrisks [Яшалова...2013]. As can be seen, the main focus in the definition on the growth of people's welfare, because nature conservation, protection and in some cases, improvement by itself serves to increase people's well-being. To be more specific a  “green” economy means ecological needs’ that have beenimproving the social and economic situation of people through the rational use of resources, the preservation of the process of nature reproduction, ensuring the safety of living organisms and the growth of production. “Green”  economygoals also serve to provide resources for the future, due to the fact that non-renewable, exhausted resources will be replaced by renewable, environmentally friendly resources. Although the problem of providing resources in the future is muchmore hugeand global.

“Brown” Economy or traditional economy, since the beginning of the industrialization era, is associated with high carboncontent in production processes (due to the fact that it is mainly based on the use of fossil fuels), wasteful consumption of resources and social exclusivity.  In the opposite “green” economy is characterized by low carboncontent, rational use of resources and social inclusiveness[1].It not only saves but also renews natural capital.

Idea of “green” economy was developed based ontoconceptof sustainable development and is one of the main ways of its implementation. Sustainable development involves economic, ecological and social mediums equally.“Green Economy” also involves all those three mediums, but the focus is on efficient usage of resources, on the preservation of nature and development.Here, the main role in the growth of people's well-being is played by the problems of living and working in an environmentally safe area, in the current period and in the future.

The “green” economy’s main appeal is increasing the well-being of present and future generations through the most efficient use of current non-renewable resources, their replacement with environmentally clean resources, the preservation of natural capital and its development. 

Natural capital 

Natural capital is the world's reserves of natural assets  which include the geological, soil, air, water and resources of all living organisms,and also the wide range of services that people receive and that makes life possible[2] (it is often called ecosystem services) (Rosenberg… 2016).Natural capital includes two main components:abioticnatural capital (fossil,water, ground, air and etc.)  the abiotic inflows (rain, wind, temperature, height from sea level, soil, mud, food items, sun radiation and etc.)[3].

Economic activity has reached such proportions that every cell of the Earth is involved in the production process  which is associated with environmental degradation and the of natural capital on an increasing scale. (Usenko I.B….2018). Inattentive attitude to nature, the negative impact of people on natural capital will cause the depletion of resources and biodiversity, environmental pollution, climate change   general the lack of assets (by 2025, the world’s population may suffer from water scarcity; by 2030, 10% of biological diversity may be lost (Towards …2011) and so on). Under such conditions, the level of service represented by natural capital decreases, and the economic condition and standard of living subsequently deteriorates.

Because of that, the main issue of the “green” economy is the preservation and development of natural capital.

“Green” Growth and “Green” Employment 

“Green” Growth means economic growth and environmental stability at the same time.The most radical supporters of “green economy” believe that we should not link the future generation with economic growth, that is, economic growth should be stopped.

As indicated “green” economy is intended to increase the scale of the economy, but we should not impoverishnatural capital. The degradation of natural capital not only worsens the state of living organisms, but also makes the economy more expensive, more physical capital is needed to produce the same product or service.For example,if we pollute the water, we need to create more infrastructure to provide water and so on.  In 2011 the Organization for Economic Co-operation and Development (OECD) had developed the document “TowardsGreen Growth”[4]  (Towards …2011). That document contains tools and recommendations for further economic growth, so that natural capital continues ecosystem services for people.

We do not agree with those authors who argue that the “green” economy expands the labor market more than traditional “brown” economy. In spite of the fact that in the process of transition to a green economy, new jobs are created for the recovery of the surrounding environment, preservation of nature capital,  the elimination of ecological problems, treating an alternative energy, “green” construction,  processing and recycling waste, formation of organic agriculture,  teaching and retraining suitable specialists for a “green” economy, in the direction of creating green entrepreneurship, but until the transition to a green economy is generally complete, the growth rate of economics will be less than during the traditional economy,due to the fact that in the period of a green economy, in addition to the creation of new jobs, resources are directed to the implementation of environmental protection measures that do not create new jobs. (For example, the purchase of filters in metallurgy, construction and energy and so on). However, people's health and human resources reproduction processes are improving, and the country's human capital is growing and more.As well as the transition to a “green” economy should occur mainly through the usage of renewable resources. The renewal process is compressed in time and we are forced to match the pace of economic growth with it, otherwise we will deal with the “brown” economy that will lead us to the deterioration of natural capital.

“Green” employment includes the creation of such workplaces where resource-saving and environmentally friendly technologies are used.  “Green” workplaces may differ from each other according to two criteria: 1. product output and 2.production process. According tothe first criterion of jobs associated with the release of environmentally friendly products, and on the second one, they are associated with the usage of environmentally friendly technologies (resource-saving, environmental protection technologies.)

In the world, green jobs are ranked according to different indicators. For example, in China next determinants are used: environmental protection; energy consumption reduction; waste reduction; increasing environmental quality; usage of innovative technologies; improving the quality of human capital and so on. (Voikina …2018)

It's impossible to talk about a green economy without talking about the problempoverty reductionthat is, without cutting off the social economy, because the main goal of every economy is to increase people's welfare.

“Circular” Economy 

The current world faces a big challenge- for global reserves of non-renewable resources are gradually decreasing and it is important to preserve them for as long as possible, until the problem of adopting alternative resources has not been solved. Also economic growth threatens humanity with the worsening global and local environmental issues. It is also a very important problem that in the future the extraction of resources will gradually become difficult and the demand for them will grow, it means that resources will become more expensive, while measures to protect the environment will also become much more expensive.

One of the most important ways to solve the above problems is to form a “circular” economy, in contrast tostraight economy where is the principle: the use of raw materials for the production of the product, and the remains (the use of which is still possible for the production of products) return to the environment and its pollution. “Circular” economy is a renewable systemin which both resources and residues are minimized. Main concept of “circular” economy is directed to the rational use of natural resources. The basic principle of a circular economy is the maximum usage of resources, in conditions of minimal environmental pollution. This is achieved through the use of renewable resources and recycling of secondary raw materials. Scheme of circular economy is: resources -product –remains-resources. That is, not only growth, but also the preservation of natural capital, as well as the growth of some of them (forest, soil, recreational and others). In thestraight economy there is a threat of accelerating the disappearance of natural resources, climate change and environmental degradation,and the circulating principle of the production chain simultaneously reduces this threat and also gives new opportunities to the economy. (Abesadze R. 2019). 

An Innovative economy, economic development and a “green” economy 

As is well known, in the present period, in developed countries, an innovative economy functions which is based on a continuously growing stream of innovations in all mediums of the economy and in all elements of the economic system - in the forms of ownership, physical and human capital,  technologies, institutions and  information.What is the reason for that pace of innovation and direction?At first of all, the growth of people's welfare. For that reason, a green economy was conceived and developed -the growth of people's well-being, primarily on the basis of meeting environmental needs.

Is it possible to imagine “green” economy in isolation from the innovative economy?Of course, no, it is an integral part of the formation and development of the innovation economy.Ideas about a green economy and its implementation became possible only at a certain stage of economic development, when the level of innovative development was adequate (appropriate innovation policy, innovation system, technologies, institutions and so on), as well as with sufficient financial resources.In the current period in developed countries, the innovation economy is composed of two parts: “ yellow “ economy (the share of which gradually decreases) and “ green”  economy (the share of which gradually grows).Both of these parts are still growing, but in the end, a green economy will grow at a higher pace and an innovative economy will form, where a green economy will hold the largest part.As for the circular economy, it is a part of green economy and one of the ways to form it.

For the formation of a green economy, it is extremely important both economic development (that is, its perfection in quality) and economic growth (that is, its growth in quantity), although economic development becomes more decisive.  It is perfection in quality, innovations that makes possible the transition to a “green” economy due to the fact that this process needs qualitative changes in all elements of the economic system.In addition, in the modern period, a process is already beginning against economic growth, that is, an economic recession (R. Abesadze 2018). One of the reasons for that is the onset of environmental requirements, including the transition to a green economy, due to the fact that we cannot grow the economy more than is required by environmental reproduction processes. That is, the transition to a green economy gives rise to some stabilization of economic growth.On the contrary, as for economic development, it should be accelerated even more. This compensates for a slowdown in economic growth, due to the fact that the consumption of consumer products with new qualities and the improvement of current ones, makes humans  comfort more, even without economic growth.

A slowdown in economic growth does not mean a recession in economy, it is a parallel process of economic development and is caused by progressive and qualitative changes in economy. It is a process of getting rid of the old, reducing resource intensity,introduction of environmentally friendly technologies without waste, and the process of creating more and more comfort creating products.

In short, it is economic development that makes transition to a green economy possible. For that, it is necessary that innovative systems exist in the country, so that process of introducing innovations continues all the time.It is an innovation that allows to harmonize the growth rate of economy with the reproductive processes in nature, protect and develop natural capital and at the same time increase the level of humanwell-being. That  is the main question of “green” economy.

"Green Economy" in Georgia 

In order to form a "green" economy in Georgia, some institutional basis have already prepared. Namely: is adopted the law of Georgia on Environmental Protection (1996);

Three National Programs for Environmental Action of Georgia;Law of Georgia’s–

"Waste Management Code"; "National Strategy for Waste Management 2016-2030 and National Action Plan to 2016-2020".In these documents, the requirements of the directives envisaged by the EU-Georgia Association Agreement reflect the environmental goals and priorities of Georgia,  the strategic long-term goals are defined, tasks and specific actions to be implemented in the next 5 years which are necessary to improve the state of the environment. The main goal of environmental policy is the country's sustainable and balanced development where environmental and socio-economic challenges are discussed in the same point. Georgia participates in international conventions:Basel Convention about "Trans-boundary Transfer of Hazardous Waste and Their Placement Control"[5]; "Stockholm Convention" on "Sustainable Organic Pollutants"[6]; “ Minamata Convention on Mercury"[7], etc.)By the order of the Ministry of Economics and Sustainable Development of Georgia, the German International Cooperation (GIZ) prepared a green growth policy document. In addition, in November 2016, Georgia joined  to the "Green Growth Declaration", according to which, countries are saying to strengthen work on green growth strategies, are taken into account that "Green" and "Growth" are simultaneously included in, that also promote green investments. The principles of green economy imply monitoring and evaluation procedures that are especially important for the EU-Georgia Association Agreement and the Government's Accountability.

Other positive activities can be distinguished in the direction of "green economy”  formation in Georgia. for example[8]: working on a "green" economic growth strategy.The Ministries of economic profile and the following donor organizations are involved in the creation of it:the project of greening the economy of Eastern Neighborhood Countries of Europe (EaP GREEN), Organization for Economic Cooperation and Development (OECD) and the  UN Environmental Program (UNEP); the European standard of air quality will be launched, the existing modern automated monitoring network allows to assess air quality by European standards; since January 1, 2018, had begun the periodic technical inspection process of motor vehicles; in petrol and diesel, the norm of pollutants is approaching by the European standards; the advantages will be given to more ecological transportation, including lightweight and low-cabaret vehicles, it had begun the process of changing public transport by ecologically cleaner ones; it is planned to get rid of taxes completely in that sector which will be able to produce biologically pure products in Georgia;in the cities will be created new green recreational spaces, important investments will be made in the development of protected areas and all natural and man-made artificial ecosystems; the forest protection will be strengthened for its recreational and tourist purposes, for that reason, it is planned to encourage timber import and other;

Tbilisi City Hall is particularly active in the direction of a “green economy”that developed the Environmental Strategy on 2015-2020 and Green City Action Plan for2017-2030.

There are many problems in the formation of a "green" economy ” in Georgia: rivers are contaminated with nitrogen compounds, some  also with heavy metals, oil products, wastes of communal sectors; there is no proper cleaning of wastewater or biological cleansing and etc.Soil  pollution, erosion processes, secondary wetting and salinization of soil, extraction of row and building materials by open mining rule, as a result of the wrong actions of a human beings, soil losses are too great; obtaining of illegal and uncontrolled logging; the atmosphere is contaminated with auto transportation and power engineering

(In terms of emission,  the first place is taken by carbon dioxide, then hydrocarbons, methane, solid particles, nitrogen oxides, and ammonia). Serious shortcomings are in the direction of human health providing.(Food safety, safe usage of chemicals, harmful impacts of motor emissions, insufficient sanitary and hygienic safety of bathing and recreational waters, etc.). Disadvantages are in the field of biodiversity conservation (wasting of habitats, fragmentation, and degradation, illegal hunting and fishing, the introduction of foreign species, unsustainable usage  of biological resources, etc. In fact, protected areas are not protected for biodiversity, but only as a tourism development resource); the low level of utilization and restoration of non-traditional energy resources (Georgia is rich by: hydropower resources, solar, wind and thermal waters resources, but all of these resources are now used on a very small scale), the waste management system is incomplete, it does not meet to international requirements; perfection needs an appropriate institutional base.

(For example, should be adopted, the law about mining recycling waste, a "green" economic development strategy, etc.); should be enhanced the environmental educational system and so on.

Will Georgia be able to rapidly move to a  "green economy ” ? The answer to that question is negative, because a  "green" economy will depend on the general level of economic development. Although that process can be accelerated as a result of foreign aids, but it  is so complicated that if the profound changes in the economy don't happen that  process won't be implemented perfectly. It is necessary to start an innovative economy in our country, forming appropriate innovative system ( R. Abesadze …2018) So under which conditions will become a more intensive for using of the world experiences and Georgia will be able to  overcome the obstacles that are characteristic to it.

                                                                    Conclusions

1. A "green economy” is the part of the innovative economy where the negative impact on the environment is minimized and aims to increase welfare of the present and future generations.It is characterized by low carbon content, rational use of resources and social inclusiveness, unlike "brown”, or traditional economics that is characterized by high carbon content (because it is based primarily on fossil fuels), resource consumption and social exclusivity.It implies the improvement of economic and social conditions of people by means of ecological requirements - rational usage of resources, preservation the nature and it’s  reproduction processes, ensuring the safety of living organisms and increasing productivity.
2. Formation and development of innovative economics is primarily driven by the welfare of human beings. A "green" economy ” for that reason, is increasethe welfare of human beings primarily, it was conceived and developed onto ecological requirements.
3. A "green economy” is an integral part in the development of innovative economy. The real "green" economy and realization of its implementation at a certain stage of economic development has been possible, at the same time, when the level of innovative development (relevant innovative policy, innovative system, technologies, institutions, etc.) was sufficient as so as the financial resources.In today's developed countries the innovative economy consists of two points:a "yellow" economy (it’s share is gradually decreasing) and a "green economy”  (it’s  share is gradually rising).Both these parts are still rising, but sooner, a "green" economy will grow and the innovative economy will be formed where a "green" economy will absorb a large part of it.However, the innovative economy is a more complicated system where more difficult processes are taking place, such as " techno-sphere " etc.
4. A "green economy” is not part of  innovation economy, but it is mainly derived from the influence of international organizations (since the Earth is mankind's common dwelling) and is based on existing technologies in developed countries where a "green economy” is possible only in the formation of a full-fledged innovative economy with, as a "green economy” was in the process of fundamental changes taking place in the whole  economic system, in all its elements which can be achieved only through the implementation of innovation, given by the characteristics of concrete country.
5. The goals of "green economy” serve to facilitate resources in the future, as unrecognizable, replaceable resources are replaced by restorative, ecologically clean resources. However, the problem of providing resources in the future is wider and global.
6. The idea of "green economy” has been developed on the risk of sustainable development concept and one of the main ways to implement it.
7. Negative impacts on human capital will result in reduction of resources and biodiversity, environmental pollution, climate change, and general lack of assets.In such conditions the level of service provided by natural capital is reduced which will lead to worsening of economic conditions and lowering the standards of living. Thereforethe main task of "green economy” is to maintain and develop natural capital.
8. While the new issues of "green economy” are going to create new jobs, economic growth rates will be less than it would be in traditional economy, since the creation of new jobs in "green" economy” flows into  implementation of such natural measures that do not create new jobs. A "green economy” will have to go through the usage of renewable resources.The restoration processes is limited in time and we are forced to adapt to the growth rates of economy which naturally leads to certain stabilization of economic growth.
9. The "green" workplace can be distinguished by two criteria: 1. According to the product release and 2. According to the production process. According to the first criterion, jobs are related to the issuance of ecologically pure products and the second one, by using ecologically pure technology (resource saving, environmental technologies).
10. A  “ circular economy”  is one of the issues of  "green economy”. It is a recovery system in which resources and waste are minimized.
11. For formation of "green economy”, it is necessary to develop economic development and growth, but economic development is becoming more decisive. That's the qualitative changes in economy, the innovations make it possible to move to "green economy”.The modern stage has already begun the opposite process of economic growth i.e. economic decline.One reason for that is the launch of ecological requirements, including a "green economy”, because the economy can’t grow more than it is required by the process of rebuilding nature.Consequently, a "green economy” is determined by some stabilization of economic growth. As for economic development, on the contrary, it should be even faster.It will compensate for the slowing growth of economy, since the usage of new consumer properties and improving existing ones increases human comfort without even economic growth.
12. There are some institutional bases in the form of "green economy” in Georgia. These documents reflect the environmental goals of Georgia.In addition, some activities are planned to be implemented in the nearest future:working on a "green" economy growth strategy, Georgia participates in International Nature Conservation Conventions:the periodic technical inspection process of motor vehicles started; advantages will be given to ecological transport, public transportation to ecologically cleaner transport;using the existing modern automated monitoring network, the European standards of air quality will be launched; from January 2018 on the supply of pollutants in gasoline and diesel, the European standards will be approached; the sector, which produces biologically pure products in Georgia, will be fully exempt from taxes;in the cities will be created new green recreational spaces, important investments will be made in the development of protected areas and all natural and man-made artificial ecosystems; forest protection will be strengthened for its recreational and touristic purposes, for that it is planned to encourage timber import and others.
13. Transition to a "green" economy depends on the overall level of economic development.Although that process can be accelerated as a result of foreign assistance in Georgia, but this process is so complicated that if the profound changes in the whole  economy  won’t happen, it can’t be fully implemented.It is necessary to start an innovative economy in our country by forming an appropriate innovation system. {R. Abesadze ...2018} which will become more intensive in the usage of world experiences, taking into account their own commitments and overcome obstacles that will characterize Georgia's competitiveness. 

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