the relationship between economic growth and sustainability
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The Relationship between Economic Growth and SustainabilityPresented by Kayla Davenport
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The Three Pillars: Social Environmental Economic (our
focus)
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What is Economic Growth?▪ Economic Growth: The rate of increase in real (adjusted for
inflation) gross domestic product (GDP).▪ Economic growth is more of the same (jobs, income,
people, etc.).▪ Is this increase in rGDP always evenly distributed? ▪ Short Answer: Absolutely Not.
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UC Berkeley Economics professor Emmanuel Saez updated his estimates of income inequality
95% of income gains from 2009 to 2013 have accrued to the top 1%.
Unequal per-capita GDP Distribution in the U.S.
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Disability-Adjusted Life-Years: One DALY can be thought of as one lost year of healthy life. This
metric is used to quantify the burden of pollution or disease. A key human capital indicator of sustainability According to the World Bank, per 1,000 people:
Sub-Saharan Africa: 120 India: approx. 70 Middle East: 60+ China: 15 “Established Market Economies”: approx. 7
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Ensuring Equitable Distribution of Growth▪ How can we ensure that economic growth improves the well-
being of all people?▪ The U.N.’s Human Development Report argues that, for
economic growth to improve everyone’s well-being, it must:▪ 1. Prevent those who failed to gain from growth from
experiencing poverty.▪ 2. Create jobs.▪ 3. Ensure wide participation.▪ 4. Protect the environment for future generations.▪ 5. Protect cultural traditions.
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Economic Growth: is it Sustainable?Yes:▪ Produces income that raises
many out of poverty▪ Higher incomes lead to safer
drinking water and cleaner, less resource-intensive production technologies
No:▪ Rich countries consume the
majority of the world’s resources
▪ These countries are responsible for a great deal of the world’s trash, toxic emissions, ozone-depleting chemicals, and greenhouse gases. “The problem of the sustainability of a macroeconomy is less
about economic growth per se, and more about the nature of what is produced and how” (319).
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In the case of Energy and Economic Growth:
Production side: Energy intensity has declined in most countries. This is attributed to improvements in technical efficiency associated with new capital.
Consumption side: Economic growth tends to be associated with increases in energy consumption (e.g., electricity, air conditioning, refrigeration, space and water heating).
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Environmental Kuznets Curve (EKC)Figure 13.1 There is an
inverted-U relationship between pollution intensities and per-capita GDP
This curve links per-capita GDP growth to sustainability
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Disputes over the EKC
Not all pollutants follow this pattern
Not all economists accept the EKC
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Declining Material Throughput: How is it Done?
“Service and flow” economies Leasing rather than owning Purchasing locally produced goods
and services
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Economic Growth vs. Economic Development
Which term should we use when discussing Sustainability?
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In Summary…
What is the relationship between economic growth and sustainability?
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Works Cited:Hackett, S. 2011. Environmental and Natural Resources Economics: 313-320. 4th ed. Armonk, NY.: M.E. Sharpe, Inc.
Three Pillars. Digital image. Thwink.org. N.p., n.d. Web. 31 Jan. 2017. <http://www.thwink.org/sustain/glossary/images/ThreePillars_ArchitecturalSimple_Large.png>.
Debate. Digital image. Clipartpanda.com. N.p., n.d. Web. 1 Feb. 2017. <http://images.clipartpanda.com/debate-clipart-1be2a998702ad3820d3c62219a4dfd18.jpg>.
Economic Growth. Digital image. Personalmoneyservice.com. N.p., n.d. Web. 1 Feb. 2017. <http://personalmoneyservice.com/wp-content/uploads/2015/02/economic-growth.jpg>.
Thumbs Up. Digital image. Clipartfest.com. N.p., n.d. Web. 31 Jan. 2017. <https://img.clipartfest.com/754e17cfd61de8bae4ee7d6c3465e271_thumbs-up-thumb- up- clip-art-at-clipart-of-thumbs-up_1860-2371.png>.
Barro, Josh. "95% Of Income Gains Since 2009 Went To The Top 1% - Here's What That Really Means." Business Insider. Business Insider, 12 Sept. 2013. Web. 02 Feb. 2017.