Energy, Economic Growth and Environmental Sustainability: Five Propositions

How Technological Efficiency Improvements Change Consumer Preferences: Towards a Psychological Theory of Rebound Effects

Must a society aim indefinitely for continued economic growth? Proponents of economic growth advance three central challenges to the idea that a society, having attained high levels of income and wealth, may justly cease to pursue further economic growth: if environmentally sustainable and the gains fairly distributed, first, continued economic growth could make everyone within a society and globally, and especially the worst off, progressively better off; second, the pursuit of economic growth spurs ongoing innovation, which enhances people’s opportunities and protects a society against future risks; and third, continued economic growth fosters attitudes of openness, tolerance, and generosity, which are essential to the functioning of a liberal democratic society. This article grants these challenges’ normative foundations, to show that, even if one accepts their underlying premises as requirements of justice, a society may still justly cease to aim for economic growth, so long as it continues to aim for and realize gains on other dimensions. I argue that, while continued economic growth might instrumentally serve valuable ends, it is not necessary for their realization, as a society can achieve these ends through other means.

Understanding the dynamic nexus between CO2 emissions and economic growth in the sustainable environment helps the economies in developing resources and formulating apposite energy policies. In the recent past, various studies have explored the nexus between CO2 emissions and economic growth. This study, however, investigates the nexus between renewable energy production, CO2 emissions, and economic growth over the period from 1995 to 2016 for seven Association of Southeast Asian Nations (ASEAN) countries. Fully Modified Ordinary Least Square (FMOLS) and Dynamic Ordinary Least Square (DOLS) methodologies were used to estimate the long- and short-run relationships. The panel results revealed that renewable energy production has a significant long term effect on CO2 emissions for Vietnam (t = −2.990), Thailand (t = −2.505), and Indonesia (t = −2.515), and economic growth impact for Malaysia (t = 2.050), Thailand (t = −2.001), and the Philippines (t = −2.710). It is, therefore, vital that the ASEAN countries implement policies and strategies that ensure energy saving and continuous economic growth without forsaking the environment. This study, as such, recommends that ASEAN countries should take measures to decrease the reliance on fossil fuels for achieving these objectives. Future research should consider the principles of circular economy and clean energy development mechanisms integrated with renewable energy technologies.

Debate about the relationship between environmental limits and economic growth has been taking place for several decades. These arguments have re-emerged with greater intensity following advances in the understanding of the economics of climate change, increases in resource and oil prices and the re-emergence of the discussion about �peak oil�. The economic pessimism created by the great recession of 2008-2012 has also put the spotlight back on the prospects for economic growth. This chapter provides a conceptual and synthetic analysis of the relationship between economic growth and environmental limits, including those imposed by climate change. It explores two related questions. Will environmental limits, including limits on the climate system, slow or even halt economic growth? If not, how will the nature of economic growth have to alter? It is concluded that continued economic growth is feasible and desirable, although not without significant changes in its characteristics. These changes need to involve ultimately the reduction of the rate of material output, with continued growth in value being generated by expansion in the �intellectual economy�.

Debate about the relationship between environmental limits and economic growth has been taking place for several decades. These arguments have re-emerged with greater intensity following advances in the understanding of the economics of climate change, increases in resource and oil prices and the re-emergence of the discussion about “peak oil”. The economic pessimism created by the great recession of 2008-2012 has also put the spotlight back on the prospects for economic growth. This chapter provides a conceptual and synthetic analysis of the relationship between economic growth and environmental limits, including those imposed by climate change. It explores two related questions. Will environmental limits, including limits on the climate system, slow or even halt economic growth? If not, how will the nature of economic growth have to alter? It is concluded that continued economic growth is feasible and desirable, although not without significant changes in its characteristics. These changes need to involve ultimately the reduction of the rate of material output, with continued growth in value being generated by expansion in the “intellectual economy”.

As one of the key issues in China’s sustainable development, rapid urbanization and continuous economic growth are accompanied by a steady increase of water consumption and a severe urban water crisis. A better understanding of the relationship among urbanization, economic growth and water use change is necessary for Chinese decision makers at various levels to address the positive and negative effects of urbanization. Thus, we established a complete decomposition model to quantify the driving effects of urbanization on economic growth and water use change for China and its 31 provincial administrative regions during the period of 1997–2011. The results show that, (1) China’s urbanization only contributed about 30% of the economic growth. Therefore, such idea as urbanization is the major driving force of economic growth may be weakened. (2) China’s urbanization increased 2352×108 m3 of water use by increasing the economic aggregate. However, it decreased 4530×108 m3 of water use by optimizing the industrial structure and improving the water use efficiency. Therefore, such idea as urbanization is the major driving force of water demand growth may be reacquainted. (3) Urbanization usually made greater contribution to economic and water use growth in the provincial administrative regions in east and central China, which had larger population and economic aggregate and stepped into the accelerating period of urbanization. However, it also made greater contribution to industrial structure optimization and water use efficiency improvement, and then largely decreased total water use. In total, urbanization had negative effects on water use growth in most provincial administrative regions in China, and the spatiotemporal differences among them were lessened on the whole. (4) Though urbanization helps to decrease water use for China and most provincial administrative regions, it may cause water crisis in urban built-up areas or urban agglomerations. Therefore, China should construct the water transfer and compensation mechanisms between urban and rural areas, or low and high density urban areas as soon as possible.

This paper explores the relationship between energy consumption, economic growth, and life satisfaction and makes the case that economic growth as usual is no longer a desirable or sustainable policy goal. Historically, economic and social development go along with energy sector transformation and total energy use. As a country develops, its use of energy increases, resource consumption increases, population booms, life expectancy rises, and overall socio-economic outcomes are improved. One might deduce then, that life satisfaction is also tightly correlated to economic development and energy consumption, but is this the case? To answer this question, current academic literature and data on the relationship between energy consumption, GDP, and quality of life were explored. The review showed a weak relationship between GDP and quality of life, a saturation relationship between energy use and social returns (social returns increase with increasing energy use to a point), and a strong relationship between GDP and energy use. There have been high hopes that improvements in energy-efficient technology will reduce global aggregate resource consumption, however, there is a growing body of research to suggest the opposite is likely to occur due to ”rebound effects”. The major environmental issues of our time have been seen predominantly as issues to be solved through advancements in technology; however, it is the argument of this paper that they cannot be addressed from a purely technological standpoint. Of course, improving energy efficiency is an important factor, but we must not forget the equally important subject of human behavior and our addiction to continual economic growth. We must first address the human desire to consume resources in the pursuit of happiness and socio-economic status, and shift towards a mentality of sufficiency. Future research must demonstrate concrete examples of sustainable development and consumption, advance the discourse on how the individual can be part of the solution, and empower the implementation of sustainable government policy.

Continuous economic growth and the rise in energy consumption are linked with environmental pollution. Demand for health care expenditure increased after the COVID-19 pandemic. This study is interesting in modeling the nexus between public and private health expenditure, carbon dioxide emissions, and economic growth. To this end, the present study analyzed the nexus between public and private health care expenditure, economic growth, and environmental pollution for 36 Asian countries for the period 1991–2017. FMOLS, GMM, and quantile regression analysis confirm the EKC hypothesis in Asia. Besides, FMOLS and quantile regressions reached the reducing effects of government and private health expenditures on CO2 emissions. While quantile regression results show that public and private health expenditures can mitigate CO2 emissions; however, these results differ for various levels of CO2. Findings of quantile regression show a significant impact of both public and private health expenditures in reducing CO2 at the 50th and 75th quantiles but results are insignificant for the 25th quantile. Overall, the paper concludes that both government and private health sectors’ expenditures caused CO2 emissions to decrease in Asia and that the negative impact of the private health sector on CO2 emissions is greater than that of the government health sector. The concluding remark is that the higher the health spending, the higher the environmental quality will be in Asia. Hence, the health administrators need to increase public and private health expenditures with an effective cost-service and energy-efficient management approach to reach sustainable health services and a sustainable environment in Asia.Supplementary InformationThe online version contains supplementary material available at 10.1007/s11356-021-13639-6.

Research background: The increasing demand for energy, driven by economic growth and population expansion, is a critical driver of societal progress. However, the predominant reliance on fossil fuels to meet this demand presents significant challenges, particularly in the rapidly developing BRICS nations (Brazil, Russia, India, China, and South Africa). These countries are faced with a complex interplay of energy security and environmental sustainability issues, stemming from their substantial fossil fuel reserves and the associated environmental consequences. The challenges manifest as inequalities in access to clean energy, environmental degradation, and heightened vulnerability to the impacts of climate change. Addressing these multifaceted issues requires a comprehensive approach. Metrics-based strategies, which employ aggregated indices derived from a diverse set of energy and environmental indicators, have the potential to provide valuable insights into these complexities. However, the development of a universally applicable energy sustainability index is complicated by the heterogeneity of metrics, disparities between countries, and methodological challenges, emphasizing the need for an innovative and holistic analytical framework. Purpose of the article: This study aims to develop a tailored Energy Security and Environmental Sustainability Index for BRICS economies to evaluate the robustness of their energy systems and the viability of their ecological practices. The index serves as an instrument to assess the progress of these nations in the Energy and Environment domain and identify areas that require targeted interventions and improvements. Methods: The construction of the composite ESESI involves the selection of relevant parameters and the application of a Multi-Criteria Decision Analysis (MCDA) framework in conjunction with the Weighted Product Method (WPM). To ensure objectivity in the determination of optimal and least favorable weights for each indicator, the study employs the Multiplicative Data Envelopment Analysis (MDEA) model. Findings & value added: The ESESI analysis reveals disparities in the progress made by BRICS nations in enhancing energy security, promoting renewable energy deployment, and mitigating environmental impacts. While some countries demonstrate substantial advancements, others face challenges in improving energy efficiency and reducing carbon emissions. The study underscores the necessity for tailored policies and targeted infrastructural enhancements that align with the unique challenges and strengths of each nation. Harnessing the abundant renewable energy potential through advanced energy trade mechanisms and fostering cross-border investments are identified as crucial strategies for ensuring environmental sustainability and long-term energy in the BRICS region. The ESESI provides a valuable tool for policymakers and researchers to evaluate the progress of BRICS nations in achieving sustainable energy goals and to inform evidence-based decision-making processes. By offering a comprehensive and scientifically rigorous assessment framework, this study contributes to the ongoing discourse on sustainable energy transitions and environmental stewardship in the context of rapidly developing economies.

Ending fossil-based growth: Confronting the political economy of petrochemical plastics

As global warming and other environmental threats intensify and become more visible, scientists are increasingly questioning the desirability of economic growth as an overarching national and global policy imperative. Several theories in environmental sociology and economics—degrowth, steady-state economy, and “agrowth”—offer compelling arguments that environmental sustainability and continuous economic growth are incompatible. However, there is a shortage of empirical evidence about public opinion on the growth versus environment dilemma, despite its great relevance for the social legitimacy of governments’ approach to the issue. In this article, we aim to narrow this research gap by applying multilevel models to data from the 2017 European Values Study (EVS). We find that the idea of sacrificing a certain level of growth for the sake of the environment receives high levels of support in most European countries. Nevertheless, within countries, we find clear indications of social divides in opinions regarding the growth versus environment dilemma: post-materialists, politically left-leaning people, the better-off, and the higher-educated are in favor of reduced growth, whereas materialists, right-wing individuals, and disadvantaged groups prioritize the economy over ecological concerns. At the country level, economic affluence is associated with greater support for reduced growth, irrespective of the differences in post-materialist values and the ecological situation. In practical terms, our results suggest that politicians can be bolder in promoting substantive environmental measures, even those that reduce growth.

Energy efficiency improvement (EEI) is generally known to be a cost-effective measure for meeting energy, climate, and sustainable growth targets. Unfortunately, behavioral responses to such improvements (called energy rebound effects) may reduce the expected savings in energy and emissions from EEI. Hence, the size of this effect should be considered to help design efficient energy and climate targets. Currently, there are significant differences in approaches for measuring the rebound effect. Here, we used a two-step procedure to measure both short- and long-term energy rebound effects in the Swedish manufacturing industry. In the first step, we used data envelopment analysis (DEA) to measure energy efficiency. In the second step, we use the efficiency scores and estimated a derived energy demand equation including rebound effects using a dynamic panel regression model. This approach was applied to a firm-level panel dataset covering 14 sectors in Swedish manufacturing over the period 1997–2008. We showed that, in the short run, partial and statistically significant rebound effects exist within all manufacturing sectors, meaning that the rebound effect decreased the energy and emission savings expected from EEI. The long-term rebound effect was in general smaller than the short-term effect, implying that within each sector, energy and emission savings due to EEI are larger in the long run compared to the short run. Using our estimates of energy efficiency and rebound effect, we further performed a post-estimation analysis to provide a guide to policy makers by identifying sectors where EEI have the most potential to promote sustainable economic growth with the lowest environmental impact.

The effectiveness of energy efficiency improvement in a developing country: Rebound effect of residential electricity use in South Korea

The question that motivates this article has been a matter of dispute: Is it possible to combine perpetual economic growth and longterm environmental sustainability based on the premise that economic growth can be fully decoupled from negative environmental impacts? The article addresses this question from the position of critical realism. An empirical study focusing on the housing sector is conducted, indicating that housing stock growth and economic growth have been, at best, weakly decoupled from environmental impacts. In the long run, it seems implausible that the degree of decoupling can be increased at a rate sufficient to compensate for continual growth in the volume of housing stock. A further elaboration of the topic at an ontological level leads to the conclusion that continual economic growth and long-term environmental sustainability can hardly be combined.

The rebound effect on energy efficiency improvements in China’s transportation sector: A CGE analysis