
Growth without economic growth
Economic growth is closely correlated to environmental depletion and resource use. This report explores the need to decouple economic growth and resource consumption to achieve the sustainability goals and the European Green Deal. It introduces alternative views to economic growth including circular economics, green growth and doughnut economics.
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OVERVIEW
This briefing report is part of the ‘Narratives for change’ series published by the European Environment Agency, focused on presenting alternative perspectives on economic growth and human progress. It addresses some of the limitations of the European Union´s current plans to tackle the sustainability issues linked to growth, including absolute decoupling and circular economy. Furthermore, it argues the need for change and discusses some of the alternative schools of thought about growth.
Human civilisation is currently severely unsustainable. The complex interaction of human needs, desires, activities and technologies have contributed to a rapid increase in consumption and hence, environmental degradation. There is an urgent need to tackle these dynamics and various bodies worldwide are coming together to develop narratives for change.
It is unlikely that economic growth can be decoupled from resource use and environmental degradation. While technological development can be used to enhance sustainability, it has empirically been correlated to an increase in consumption and use of resources. Moreover, the development has led to a growing middle class that in turn is driving unsustainable growth.
The concept of a circular economy suggests that material resources could be increasingly sourced from within the economy, reducing environmental impact by increasing the reuse and recycling of materials. Circular economy policies promote circular and responsible production and consumption patterns. There are, however, limitations to the sustainability transitions based on a circularity when it is coupled with economic growth goals. Furthermore, there are technological boundaries to circularity. In 2019, only 12% of material input in EU-27 was recycled.
Various schools to rethinking growth have developed over the last decades. Some of which include “degrowth”, “post-growth”, “green growth”, and “doughnut economics”. There is a need to incorporate these more radical views on sustainability into mainstream policy processes in the coming years. Moreover, inspiration can be found in various spiritual, religious, and secular communities that live simpler and consume less.
Material consumption is not fundamental in European heritage. The primary values in the EU are freedom, democracy, equity, human dignity and the rule of law. Economic growth is, however, greatly correlated with human health and wellbeing. A great challenge will be to decrease growth and consumption and simultaneously continue to increase wellbeing indicators.
Despite being one of the most equal regions in the world, Europe´s inequality rates have been rising. Furthermore, there are concerns about high unemployment rates leading to younger people in Europe being less well of than the previous generation. The need for a universal basic income is being supported by close to two-thirds of the European population. It has been argued that it can help resolve unequal distributions and gender biases across society.
Ultimately, there is a need to create transformative change in the complex dynamics of society, redefining the way growth is measured. Infinite growth on a finite planet is not possible in economic and quantitative terms. It may, however, be possible in human existential values and qualitative terms. Political initiatives for sustainable development, such as the European Green Deal, require solutions beyond technological measures, including fundamental societal changes in consumption and practices.
KEY INSIGHTS
- The Great Acceleration refers to the sudden and rapid increase of resource use and consumption. There is an evident link between the ongoing Great Acceleration in pollution, climate change, loss of biodiversity and natural capital, and the contemporary growth-driven economic activities.
- Absolute decoupling of economic growth and resource consumption is not feasible. Even in a circular economy where waste was continuously recycled back into the economy, there would still be a need for additional input in order to drive growth.
- A fully circular economy is not possible due to technical limitations, particularly, when economic growth is a goal. Only 12% of current material input was recycled in 2019.
- Some valuable alternatives to the mainstream conceptions of growth include Doughnut economics, post-growth and degrowth schools.
- The European fundamental values do not require growth. The contemporary European consumption patterns are one of the largest in the world, and the current plans to tackle it are still too weak.
- Growth is ingrained into our social, cultural, political and instructional structures. There is an urgent need to address the complex dynamics that make up these structures. Alternative perspectives on growth and communities that live simply and minimalistic offer inspiration to change.
- Political initiatives to tackle sustainability issues, such as the European Green Deal, require changes beyond technological solutions. There is a need to create transitions in fundamental societal practices and consumption.
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