Delinking environmental impacts from economic growth: issues of scale and indicators

Author(s):  
Sander M. Bruyn
Author(s):  
David I. Stern

The environmental Kuznets curve (EKC) is a hypothesized relationship between environmental degradation and GDP per capita. In the early stages of economic growth, pollution emissions and other human impacts on the environment increase, but beyond some level of GDP per capita (which varies for different indicators), the trend reverses, so that at high income levels, economic growth leads to environmental improvement. This implies that environmental impacts or emissions per capita are an inverted U-shaped function of GDP per capita. The EKC has been the dominant approach among economists to modeling ambient pollution concentrations and aggregate emissions since Grossman and Krueger introduced it in 1991 and is even found in introductory economics textbooks. Despite this, the EKC was criticized almost from the start on statistical and policy grounds, and debate continues. While concentrations and also emissions of some local pollutants, such as sulfur dioxide, have clearly declined in developed countries in recent decades, evidence for other pollutants, such as carbon dioxide, is much weaker. Initially, many understood the EKC to imply that environmental problems might be due to a lack of sufficient economic development, rather than the reverse, as was conventionally thought. This alarmed others because a simplistic policy prescription based on this idea, while perhaps addressing some issues like deforestation or local air pollution, could exacerbate environmental problems like climate change. Additionally, many of the econometric studies that supported the EKC were found to be statistically fragile. Some more recent research integrates the EKC with alternative approaches and finds that the relation between environmental impacts and development is subtler than the simple picture painted by the EKC. This research shows that usually, growth in the scale of the economy increases environmental impacts, all else held constant. However, the impact of growth might decline as countries get richer, and richer countries are likely to make more rapid progress in reducing environmental impacts. Finally, there is often convergence among countries, so that countries that have relatively high levels of impacts reduce them more quickly or increase them more slowly, all else held constant.


2020 ◽  
Vol 25 (2) ◽  
pp. 329-336
Author(s):  
Cristian Méndez-Rodríguez ◽  
Carlos F. Rengifo-Rodas ◽  
Juan Carlos Corrales-Muñoz ◽  
Apolinar Figueroa-Casas

The management of natural resources, especially energy resources, is a challenge for today's society. For this reason, Energy Efficiency (E.E.) is considered as a key tool to promote economic growth, reduce the consumption of natural energy resources, and help to solve multiple environmental impacts. In this study, a systematic mapping of the literature concerning E.E. is carried out. Based on the research questions formulated in the systematic mapping, a knowledge gap is identified, which is that the problems linked to energy are not being addressed from a systemic and interdisciplinary paradigm. This calls for the development of methodological, sociological, and technological processes that allow understanding of E.E. from a systemic perspective. Finally, the basis for an alternative vision of E.E. in Colombia is proposed, which tends towards the sustainability and conservation of natural energy resources.


Oikonomics ◽  
2021 ◽  
Author(s):  
Federico Demaria

For a sustainable post-Covid-19 recovery strategy, humanity faces two major challenges: 1. Just prosperity: The creation of a resilient and fair economy that delivers prosperity for all; 2. Public and planetary health: protect human health, together with the reduction of environmental impacts below thresholds of planetary boundaries including greenhouse gas emissions. The Covid-19 crisis could represent an opportunity for responses that integrate different goals, or a drawback if some are prioritized without considering their impacts on the others. New kinds of informed solutions are needed to ensure long-term sustainability in social, economic, and environmental terms. This article addresses the research question: How could developed countries manage a sustainable recovery that provides a good life for all within public and planetary health? First, it argues that economic growth is not compatible with environmental sustainability. Green Keynesianism is based on the hypothesis that economic growth can be decoupled from environmental impacts, but this has not happened and it is unlikely to happen. Second, it introduces degrowth as an alternative to green growth. Degrowth challenges the hegemony of economic growth and calls for a democratically led redistributive downscaling of production and consumption in industrialised countries as a means to achieve environmental sustainability, social justice, and well-being. Third, it traces the recent evolution of the term degrowth from an activist slogan to an academic concept. Last, it calls for an alliance of alternatives that could foster a deeply radical socio-ecological transformation.


2015 ◽  
Vol 3 (3) ◽  
pp. 118-144 ◽  
Author(s):  
Linda Bergset ◽  
Klaus Fichter

There is a growing political consensus about the necessity to decouple economic growth from environmental impacts. For a transition towards a green economy radical innovation plays a central role. Start-ups are key marketin the development and market introduction of radical sustainable innovation, but so far there is little research on the specific challenges and opportunities of “green” start-ups. In this conceptual paper, we bring together research and theory on entrepreneurship and innovation as well as sustainable business practice and ask why and how different types of “green” start-ups may encounter specific financing challenges and opportunities when developing their products/services. As existing typologies are too unspecific to properly explain the financing challenges and opportunities of green start-ups, we elaborate on these and develop a new typology of green start-ups. This typology will enable further empirical exploration of specific challenges and opportunities that such start-ups have when looking for finance.


2014 ◽  
Vol 9 (2) ◽  
pp. 115-121 ◽  
Author(s):  
Ana Horta ◽  
Harold Wilhite ◽  
Luísa Schmidt ◽  
Françoise Bartiaux

Energy consumption inconspicuously bridges nature and culture. Modern societies and cultures depend on intensive energy use from the extraction of natural resources. In fact, the industrialization process required large amounts of energy, but main sources such as oil and coal, have been gradually depleted and found to be heavily polluting the environment. Despite their environmental impacts, these resources have provided cheap and abundant power to fuel technological progress and economic growth. (See Agustoni and Maretti [2012] for a good historical summary of the relations between energy production and usages.)


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