A Multi-dimension Sustainability Assessment of the Economic Growth in Jordan Using the Sustainability Window Analysis

Abstract

This study aims to holistically appraise the economic growth in Jordan over the 2006–2016 period, and to highlight the corrective measures to transition the Jordanian economy to a greener pathway. The Sustainability Window (SuWi) analysis tool was utilized under four scenarios: In scenario 1, gross domestic product (GDP) and greenhouse gas (GHG) per capita were the economic and environmental indicators; and employment, healthy life, and education were the social indicators. Scenarios 2 and 3 were similar to scenario 1 except that the environmental indicator was GHG intensity in scenario 2 and consumption in scenario 3. In scenario 4, GDP per capita was the economic indicator, employment was the social indicator, and GHG per capita, GHG intensity, and consumption were the environmental indicators. The economic growth over the study period satisfied all sustainability criteria except when the education was used as the social indicator. The economic growth was coupled with a decline in GHG intensity, GHG per capita, and consumption values and a rise in employment and healthy life values. The normalized economic indicator value in the final year was 2.568 for scenarios 1, 2, and 3 and 1.610 for scenario 4. Despite the slight growth of employment over the study period, a sharp drop has been witnessed lately which is anticipated to worsen in the coming years. To successfully place the Jordanian economy on a greener pathway, it is key to promote new industries and emerging businesses, stimulate private sector investments, and adopt transparent governance processes and enforcement mechanisms.