Uneconomic growth is
economic growth that reflects or creates a decline in the
quality of life
Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
. The concept is used in
human development theory,
welfare theory
A welfare state is a form of government in which the state (or a well-established network of social institutions) protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitabl ...
, and
ecological economics. It is usually attributed to ecological economist
Herman Daly, though other theorists may also be credited for the incipient idea, According to Daly, "uneconomic growth occurs when increases in production come at an expense in resources and well-being that is worth more than the items made." The cost, or decline in well-being, associated with extended economic growth is argued to arise as a result of "the social and environmental sacrifices made necessary by that growing encroachment on the eco-system."
Types of growth
The rate or type of economic growth may have important consequences for the environment (the
climate
Climate is the long-term weather pattern in an area, typically averaged over 30 years. More rigorously, it is the mean and variability of meteorological variables over a time spanning from months to millions of years. Some of the meteorologi ...
and
natural capital
Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of t ...
of ecologies). Concerns about possible negative effects of growth on the environment and society have led some to advocate lower levels of growth, from which comes the idea of uneconomic growth and
Green parties which argue that economies are part of a global society and a global ecology and cannot outstrip their natural growth without damaging them.
Canadian
Canadians (french: Canadiens) are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of ...
scientist
A scientist is a person who conducts scientific research to advance knowledge in an area of the natural sciences.
In classical antiquity, there was no real ancient analog of a modern scientist. Instead, philosophers engaged in the philosoph ...
David Suzuki argued in the 1990s that ecologies can only sustain typically about 1.5–3% new growth per year, and thus any requirement for greater returns from
agriculture
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...
or
forestry
Forestry is the science and craft of creating, managing, planting, using, conserving and repairing forests, woodlands, and associated resources for human and environmental benefits. Forestry is practiced in plantations and natural stands. ...
will necessarily cannibalize the
natural capital
Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of t ...
of
soil
Soil, also commonly referred to as earth or dirt
Dirt is an unclean matter, especially when in contact with a person's clothes, skin, or possessions. In such cases, they are said to become dirty.
Common types of dirt include:
* Debri ...
or
forest
A forest is an area of land dominated by trees. Hundreds of definitions of forest are used throughout the world, incorporating factors such as tree density, tree height, land use, legal standing, and ecological function. The United Nations' ...
. Some think this argument can be applied even to more developed economies.
The role of technology, and Jevons paradox
Mainstream economists would argue that economies are driven by new technology—for instance, we have faster computers today than a year ago, but not necessarily physically more computers. Growth that relies entirely on exploiting increased knowledge rather than exploiting increased
resource consumption Resource consumption is about the consumption of non-renewable, or less often, renewable resources. Specifically, it may refer to:
* water consumption
* energy consumption
** electric energy consumption
** world energy consumption
* natural gas c ...
may thus not qualify as uneconomic growth. In some cases, this may be true where technology enables lower amounts of input to be used in producing the same unit of product (and/or it reduces the amount or hazardousness of the waste generated per unit product produced) (e.g., the increased availability of movies through the Internet or cable television electronically may reduce the demand for physical video tapes or DVDs for films). Nonetheless, it is crucial to also recognise that innovation- or knowledge-driven growth still may not entirely resolve the problem of scale, or increasing resource consumption. For instance, there might likely be more computers due to greater demand and replacements for slower computers.
The
Jevons Paradox
In economics, the Jevons paradox (; sometimes Jevons effect) occurs when technological progress or government policy increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the falling cost of ...
is the proposition that technological progress that increases the efficiency with which a resource is used, tends to increase (rather than decrease) the rate of consumption of that resource. For example, given that expenditure on necessities and taxes remain the same, (i) the availability of energy-saving lightbulbs may mean lower electricity usage and fees for a household but this frees up more discretionary, disposable income for additional consumption elsewhere (an example of the
"rebound effect") and (ii) technology (or globalisation) that leads to the availability of cheaper goods for consumers also frees up discretionary income for increased consumptive spending.
On the other hand, new renewable energy and
climate change mitigation technology (such as artificial photosynthesis) has been argued to promote a prolonged era of human stewardship over ecosystems known as the
Sustainocene. In the
Sustainocene, "instead of the cargo-cult ideology of perpetual economic growth through corporate pillage of nature, globalised artificial photosynthesis will facilitate a
steady state economy
A steady-state economy is an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time. The term usually refers to the national economy o ...
and further technological revolutions such as domestic nano-factories and e-democratic input to local communal and global governance structures. In such a world, humans will no longer feel economically threatened, but rather proud, that their moral growth has allowed them to uphold
Rights of Nature."
[ Thomas Faunce. 'Artificial Photosynthesis Could Extend Rights to Nature. The Conversation 2 July 2013. https://theconversation.com/artificial-photosynthesis-could-extend-rights-to-nature-15380 (accessed 2 July 2013).]
See also
*
Steady-state economy
*
Degrowth
*
Economic growth
*
Measuring well-being
Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
*
Genuine progress indicator
*
Moral purchasing
Ethical consumerism (alternatively called ethical consumption, ethical purchasing, moral purchasing, ethical sourcing, or ethical shopping and also associated with sustainable and green consumerism) is a type of consumer activism based on the conc ...
*
Human development theory
*
Ecological economics
*
Regenerative economic theory
*
Parable of the broken window
References
Further reading
*
*
*
Takis Fotopoulos
Takis Fotopoulos ( el, Τάκης Φωτόπουλος born 14 October 1940) is a Greek political philosopher, economist and writer who founded the Inclusive Democracy movement, aiming at a synthesis of classical democracy with libertarian social ...
: "The Multidimensional Crisis and
Inclusive Democracy
Inclusive Democracy (ID) is a project that aims for direct democracy; economic democracy in a stateless, moneyless and marketless economy; self-management (democracy in the socio-economic realm); and ecological democracy.
The theoretical p ...
", Athens 2005. English online versio
*
*{{cite journal , last = Rowe , first = Jonathan , date=July–August 1999 , title = The Growth Consensus Unravels , journal =
Dollars & Sense
''Dollars & Sense'' is a magazine focusing on economics from a progressive perspective, published by Dollars & Sense, Inc, which also publishes textbooks in the same genre.
''Dollars & Sense'' describes itself as publishing "economic news and ana ...
, pages = 15–18, 33
External links
Center for the Advancement of the Steady State EconomyR&D : Research & DegrowthInternational Conference on Degrowth in the Americas, Montreal, 13–19 May 2012
Ecological economics
Economic growth
Economic globalization
Welfare economics
Economic problems
eo:Daŭripova nekresko