De-growth vs. green growth? Let's focus on the common ground to speed up the transition to sustainability!

Martin Pfaffenbach, Tobias Kronenberg and Wolf Rogowski

No 2207, Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics

Abstract: In the light of anthropogenic climate change, a polarized discussion about the right measures to keep economic activity within the planet's ecological boundaries has emerged: Advocates of de-growth argue that continuous GDP growth is impossible because of natural limits to growth. They call for measures to change individual consumption patterns, to constrain affluence in wealthy countries, and to reform the economic system in such a way that it can fulfil its functions even without continuously growing GDP. Advocates of green growth argue that GDP growth and ecological impacts are conceptionally independent and call for promoting entrepreneurial activity which facilitates the transition towards a carbon-neutral, circular economy without curtailing economic growth. At first sight, the two views appear in unresolvable conflict. After sketching the two approaches, we point towards their common ground and argue that the conflict may concern ideologies rather than evidence-based policy proposals. Taken seriously, both call e.g. for urgent action; for fundamental reforms to correct faulty price signals; for promoting a circular economy powered by regenerative energy sources; for political measures which enable sufficient life styles; and for evidence-based rather than ideological economic analysis. Focusing on this common ground may accelerate the vital transition to a sustainable economy.

Keywords: Economic growth; green growth; de-growth; ideological economics (search for similar items in EconPapers)
JEL-codes: D63 O44 Q54 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2022-05
New Economics Papers: this item is included in nep-ene, nep-env, nep-hme and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:atv:wpaper:2207

DOI: 10.26092/elib/1569

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