Abstract

Article aims to integrate New Developmentalism with Ecological View by
means of the concepts of Ecological Structural Change (ESC) and Eco-Developmental
Class-Coalition (EDCC). ESC means to increase the share of green manufacturing sector in
GDP and employment for increasing the environmental efficiency of the economy. Exchange
rate overvaluation caused by Dutch disease and growth with foreign savings can harm
green manufacturing industries even more than brown manufacturing industries. ESC
needs the existence of an EDCC that can be made difficult to occur if exchange rate overvaluation
is not removed through taxes over commodities exports, capital controls and a
dual mandate for the Central Bank.

JEL Classification: Q56; Q57; O11: O14.