Economic Growth, Environmental Sustainability, and the Path to Balance

This essay delves into the contentious relationship between economic growth and environmental sustainability, arguing that the traditional view of economic growth as a panacea is no longer viable due to its detrimental impact on the environment. The essay highlights the shift in perspective among mainstream economists, who now recognize the need to decouple economic growth from energy and material consumption. It explores the limitations of current sustainability efforts and the need for strategies like environmental accounting and sustainable investment to balance economic progress with environmental protection. The essay emphasizes the importance of adopting de-growth strategies and promoting environmentally sustainable practices, such as green bonds and venture capital, to foster a healthier and more sustainable future. The solution highlights the need to move beyond short-term economic gains and consider the long-term consequences of resource consumption, climate change, and social inequalities.

OPINION

OPINION
From decades, it is believed that economic growth is a kind of panacea to the world’s
problems like poverty, sustainability, inequality etc. There is a harsh truth that we cannot
ignore, it is that economic growth has become environmentally unsustainable. It is no more
necessary to punish the environment for economic growth. Time has come when we have to
think about the disturbing climate and seasons and make an effort to remake Earth as a happy
and healthy place to live.
Earlier mainstream economists believed economy to be physical unlike ecological economist
who always considered economy as physical. However, worsening climatic condition has
made mainstream economist to think alike ecological economist. Now, every economist is of
the view of separating economic growth from energy and material consumption.
Consumption of resources per unit of GDP has slightly declined but it is still insignificant to
achieve absolute sustainability. Economy in which we live is never circular because energy
cannot be recycled and material is recyclable up to a limit. There has been immense growth
in technology all over the world. People has become so addicted to these technologies that it
becomes difficult for them to imagine their life in its absence. Sometimes, economic growth
is not socially desirable. Inequalities are rising, poverty has yet not been resolved completely
and life satisfaction is slow or still (Demaria, 2018).y.
No doubt, economic growth is beneficial for a country and its citizens. For instance, more a
business grows and its profit increases, more that country would grow. This would create
more jobs, resources and increase the quality of life of the country’s citizens. These benefits
from economic growth attracts and motivates citizens to work more to achieve a higher
growth but these benefits are only for a short-term.
When an economy progresses and grows it uses the energy and resources of Earth. Natural
environment gets adversely affected by the smoke emission and ultimately affects the
climate. For economic growth we over-use natural resources like oil and gas and with the
help of technological improvement and advancement we consume every bit of it. We try to
extract all those resources which actually acts as the foundation for economic growth and if it
continues it will gradually swallow up the entire economy, society and environment as a
whole. The time has arrived when we start thinking of de-growth strategies to conserve and
reinvent (Higgins, 2013).
It is important to balance economic growth and sustainability. It is important for the
organisations to start practising Environmental Accounting which assist in identifying
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OPINION
inefficiencies arising due to unnecessary discharge of waste and poorly used inputs in value
chain. When these inefficiencies are managed by placing good waste management system it
results in reduced cost without lowering the input.
Apart from this, a proper training and right tool set can be provided to the new generation
entrepreneurs for maintaining the required balance between economic and environmental
sustainability. The modern instrument like Venture capital, Green bonds, Crowd Funding,
Private Equity and Internet Finance can help in promoting environmentally sustainable
investments and ultimately supporting economic sustainability in the organisations
(Broadstock, 2016)
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References
Broadstock, D. (2016). Finding a balance between economic and environmental
sustainability. Available at:
tt s s o business global e ono arti le finding balan e bet eenh p ://www. cmp.c m/ / - c my/ c /1956350/ - c - w -
e ono i and en iron entalc m c- - v m (24 February, 2020).
Demaria, F. (2018). Why economic growth is not compatible with environmental
sustainability. Available at: tt s t ee ologist org feb e ono i gro t noth p :// h c . /2018/ /22/why- c m c- w h- -
o atible en iron ental sustainabilitc mp - v m - y (24 February, 2020).
Higgins, K. L. (2013). Economic growth and sustainability – are they mutually exclusive?.
Available at: tt s else ier o onne t e ono i gro t and sustainabilit are t eh p ://www. v .c m/c c / c m c- w h- - y- - h y-
utuall e lusi em y- xc v (24 February, 2020).
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