Limits to Growth in the Context of the Environmental Transformation of the Economy in the EU and Bulgaria

Vania Ivanova

Proceedings of the Centre for Economic History Research, 2024, vol. 9, 292-304

Abstract: The use of natural resources, in particular material flows, is not only one of the main drivers of economic growth, but also leads to resource depletion and environmental problems. Existing infrastructure, economic models and technologies, together with established behaviours, keep the economy 'locked in' to the linear model. It operates in a one-way pattern of resource – production – consumption – waste. The life of resources in Europe is limited to a single cycle. Today's economy throws away more and more of the materials we extract from nature, which are increasingly difficult to degrade but have a high residual value when reused. In order to achieve economic growth without increasing the quantitative consumption of mineral resources and without adverse effects on the environment, it is necessary to carry out a decoupling analysis that combines both resource decoupling and environmental impact decoupling. The attempts to overcome the limits to growth, which began in the 1970s, take on new nuances in the context of the environmental transformation of economies today. The aim of this study is to analyse the extent to which the process of decoupling growth from resource dependence is being realised in EU countries and in Bulgaria in particular. Based on a descriptive analysis of the dynamics of the indicators economic growth rate and resource productivity in the period 1980–2020, the results show an albeit slow and uneven positive trend in Europe and a significant lag in Bulgaria. In the face of rising prices and resource depletion, this is becoming an increasingly risky factor for business development. From an economic point of view, therefore, the interest in reducing these costs, using them more efficiently and optimising raw material flows is fully justified. The paper draws conclusions about the place of the circular economy in this process and points to some opportunities for deepening the processes of transition towards a resource–efficient and environmentally friendly economy.

Keywords: decoupling; circular economy; resource productivity; EU; Bulgaria (search for similar items in EconPapers)
JEL-codes: E23 Q50 Q51 Q56 (search for similar items in EconPapers)
Date: 2024
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