Search for Sustainable Recovery: Comparison of US & EU economic/environmental policies post-COVID-19
DOI:
https://doi.org/10.47611/jsrhs.v11i2.2600Keywords:
COVID-19, recovery, sustainability, ESG, Build Back Better, European New Deal, climate change, NGEU, GDPAbstract
Since the Great Recession in 2008, the COVID-19 pandemic has brought upon the greatest economic instability the world had ever seen. The US GDP reduced by 19%, while the GDP in the European Union (EU) reduced by 12%. In addition, the persistent threat of climate change has highlighted the significance of planning recovery efforts that bring both economic and environmental benefits to their citizens. In particular, countries are making and encouraging investments that have environmental, social, and governance (ESG) factors. This paper examines the fundamental difference in approach to sustainable recovery between the U.S. and the EU. In the U.S., there is a significant lack of infrastructure in which environmental policy can be built and enforced effectively. Furthermore, funding towards sustainable recovery plans are constantly getting cut or dismissed due to the political division on environmental issues. In contrast, the European Union has spent decades, starting from The Single European Act of 1987, to build up its environmental policies and set realistic goals to be met. Compared to the US, the EU was able to pass and enact policies that help both the citizens and the environment. The US government needs to prioritize raising awareness and support for sustainable recovery effort while strengthening the Environmental Protection Agency to build a robust infrastructure.
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