Energy, Economic Growth and Environmental Sustainability: Five Propositions

• Main Author: Steven Sorrell
• Format: Article
• Language: English
• Published: MDPI AG 2010-06-01
• Series: Sustainability
• Subjects: rebound effect; steady-state economy; monetary reform
• Online Access: http://www.mdpi.com/2071-1050/2/6/1784/

This paper advances five linked and controversial propositions that have both deep historical roots and urgent contemporary relevance. These are: (a) the rebound effects from energy efficiency improvements are significant and limit the potential for decoupling energy consumption from economic growth; (b) the contribution of energy to productivity improvements and economic growth has been greatly underestimated; (c) the pursuit of improved efficiency needs to be complemented by an ethic of sufficiency; (d) sustainability is incompatible with continued economic growth in rich countries; and (e) a zero-growth economy is incompatible with a fractional reserve banking system. These propositions run counter to conventional wisdom and each highlights either a "blind spot" or "taboo subject" that deserves closer scrutiny. While accepting one proposition reinforces the case for accepting the next, the former is neither necessary nor sufficient for the latter.