Growth and its limits
Economic growth means a country produces more each year. Producing more usually needs more energy, water, land and materials, and creates more waste and carbon dioxide. The earth is limited. In 1972 a famous report, The Limits to Growth, warned that endless growth in a limited world would end in a sharp fall. Today scientists track planetary boundaries, such as climate and biodiversity, and say we have crossed some.
What is degrowth?
Degrowth asks rich countries to shrink their use of energy and materials in a planned, fair way. It does not mean a crash or fewer good things for everyone. The main ideas are:
- Cut the things that harm and add little to life: throw-away goods, heavy advertising, fast fashion, overuse of cars and flights.
- Strengthen things that matter: health, education, public transport, care work, time with family.
- Share work and wealth more fairly, for example shorter working weeks.
- Use wellbeing, not only GDP, as the measure of success.
The other side: green growth
Supporters of green growth say that technology can decouple growth from damage: solar and wind power, electric transport and recycling mean we make more with less harm. Critics reply that so far, decoupling has not been fast or complete enough, and that new products can eat up the savings (the rebound effect). Most experts agree on this much: use must fall within nature's limits. They disagree on whether growth can continue while it does.
Poor and rich countries, and the questions to ask
Degrowth is mainly aimed at rich countries, which use most resources per person. Poorer countries still need growth in food, housing, health and schooling. Good questions for the debate: Who uses most? What do people really need? Is growth giving us a better life or only more things? How can jobs and pensions be protected during change? Both views are taught so you can think for yourself.
Key formulas and definitions
- Resource use = output ร resource used per unit of output
- Yearly change in use โ growth rate โ efficiency gain
- Use after t years = start ร (1 + g)^t ร (1 โ e)^t
- Stay within limit if use โค nature's yearly supply
Worked examples
1. Output grows 3% a year and efficiency improves 3% a year. What happens to resource use?
The two cancel almost exactly, so use stays roughly flat. It does not fall, and if it already exceeds the limit it stays over it.
2. Use is 90 and the limit is 100. Output grows 3% a year with no efficiency gain. In about how many years will use pass the limit?
Use 90 ร 1.03^t = 100 gives t about 3.6 years. It passes the limit in about four years.
3. Use starts at 120 but the limit is 100. Efficiency gain is 2% a year and growth is 0%. After how many years is use under 100 (roughly)?
120 ร 0.98^t = 100 gives t about 9 years.
4. A country has growth 2% and efficiency gain 5%. Is resource use rising or falling?
Falling, by about 3% a year, because efficiency is larger than growth.
5. Which one is closer to degrowth: cutting disposable plastic or building more airports for more flights?
Cutting disposable plastic. Degrowth reduces harmful, low-value use.
Common mistakes
- Thinking degrowth means poverty or going back to the past. It means planned, fair reduction of harmful use.
- Thinking degrowth applies equally to poor countries. It is mainly for high-use rich countries.
- Believing efficiency alone always solves the problem. Rebound effects can cancel the saving.
- Treating GDP as the only measure of a good life.