Individual Report

Topic: Sustainable Living

Research Question: To What Degree can Economic Growth Incorporate
Sustainability?

Introduction/Issue:
Sustainability refers to the proficiency of a system or activity to endure and preserve in the long run
without causing significant unfavorable impacts on the environment, society, or the economy 1.
Countries around the world are actively engaged in endeavors to achieve economic growth, however,
the relationship between economic growth and sustainability is diverse and complex to an extent.
Typically the growth of an economy is measured based on the increasing production and consumption
of goods and services. Nevertheless, considering the long-term impacts of economic activity on the
environment and social well-being is a requirement to achieve sustainable development.
The United Nation’s 8th Sustainable Development Goal (SGD) states,
“Promote sustained, inclusive and sustainable economic growth, full and productive employment
and decent work for all” 2.
Based on the above information, it can be assumed that the problem of achieving sustainable economic
growth is global. Pakistan being a developing nation, has not achieved the United Nation’s Millennium
Development Goals of 2015, and is far behind in attaining the SDGs of 2030, mainly due to the lack of
applicable policies and policy enforcement, and also due to weak institutions 3. Personally, my concern
about this issue arose due to the condition of my home city, Lahore. The city being a home to large
industrial states is facing extreme environmental damage and rapidly rising levels of smog, disturbing
the societal well-being and normal day-to-day activities of the residents, as well as causing serious
health issues to the population. Through my research and report, I aim to explore various problems and
issues effecting sustainable economic growth.

Causes:
Countries worldwide are centered at their economic growth rather than on achieving sustainable
development. Specially the developing countries struggle to focus on sustainability in line with their
economic development. Mostly politicians and businesses do not pay attention to the environmental and
social consequences of economic growth.

In a New York Times piece on the climate and economics discussions at Davos, Mark Landler and
Somini Sengupta reported that:

“Critics pointed to a contradiction that they said the corporate world had been unable to resolve:
how to assuage the appetite for economic growth, based on gross domestic product, with the
urgent need to check carbon emissions. “It’s truly a contradiction,” said Johan Rockström,
director of the Potsdam Institute for Climate Impact Research. “It’s difficult to see if the current
G.D.P.-based model of economic growth can go hand-in-hand with rapid cutting of emissions,” he
said.” 4
Many economists and researchers believe that economic growth can not cater sustainability. GDP
growth is necessary for the development and prosperity of a nation and to raise living standards, and
cutting off usage of natural resources and factories that produce carbon emission will mean a
reduction in production and the GDP. Governments avoid taking such steps to maintain a sustainable
environment because they can disturb the whole economic cycle and cause a fall in GDP further
leading to unemployment and fall in incomes.
However the United Nation’s 12th Sustainable Development Goal (SGD) states,

“Ensure sustainable consumption and production patterns” 14

A major barrier to sustainable economic growth is: the earths natural resources are finite and the
permeable capacity of ecosystems is limited. Increase in GDP leads to increase in material and
energy use, and therefore it is difficult to cater sustainability with economic growth.

According to the World Bank’s Pakistan Development Update, while economic activity maintained its
momentum during July-December 2021, high demand pressures and rising global commodity prices led
to double-digit inflation and a sharp rise in the import bill during this period.9
The global population is experiencing rapid growth, placing an increasing burden on Earth's capacity to
meet its inhabitants' diverse needs and desires. The planet is being exploited at a rate that surpasses its
natural capacity to provide essential resources.
Environmental pressure groups such as Friends of the Earth and Greenpeace seek to highlight the
consequences of growth and development and its impact on natural resources.5
The Worldwide Fund for Nature claims that the natural world is being degraded "at a rate
unprecedented in human history" and has warned that if demand continues at the current rate, two
planets will be needed to meet global demand by 2050.5

Energy can only be used up to a point and is limited in supply. The global economy recycles less than
10 percent of materials; about 50 percent of processed materials are used to provide energy and are thus
not available for recycling. 6. Thus, this makes economic growth incompatible with sustainable
development as recycling the maximum resources is a major goal of sustainable development.

Renewable energy produces less net energy, because it has a lower EROI (Energy Return on
Investment) than fossil fuels 7. So this type of energy is not enough to fulfil the present demand for
energy.

To ensure sustainable economic growth, massive investment is required. For example, the International
Energy Agency estimates that net-zero emissions might require investments of almost $5 trillion each
year by 2030, and $4.5 trillion per year by 2050.2 The annual bill equates to about half of global
corporate profits in 2019, or about one and a half times the annual increase in public debt over the
preceding 15 years. Additional investments needed for decarbonization in agriculture, transportation,
and other sectors could nearly double the bill. While many of these investments would produce a return,
their financing or pricing is not yet set up 7.
Third world countries and developing countries with low incomes can not afford such huge investments
and this is why many of these countries fail to maintain economic sustainability.
Since 1980, the UK and the US have reduced CO2 emission. 8. This indicates that the developing
countries contribute more to the growth of carbon emissions.
Even the developed countries prefer spending on their economic expansion rather than on their
sustainability because this gives them immediate benefits and results unlike the long term goals of
achieving sustainable development.
All these factors combined become the cause behind the inability to achieve sustainability in line with
economic growth.

Consequences:
The outcomes of failing to achieve economic growth sustainably are adverse. Economic activity
includes using up earth’s renewable and non renewable resources to produce goods and services in
order to fulfill the market demand. The processes of production include usage of machines and factories
that release carbon emissions and other harmful gases and waste. The excess of greenhouse gases
including carbon dioxide (CO2), methane, and nitrous oxide 10 result in Global Warming.
Furthermore, natural resources such as forests, oil/coal/gas, fish, etc, are depleting due to the fast-paced
economic growth 8. The world is facing loss of biodiversity 8 due many reasons including water
pollution caused by toxic waste dumped by factories which cause long term damage to the
surroundings.

Climate change is a major global issue and one of the reasons behind climate change, indirectly, is
economic growth. Climate change negatively effects a lot of industrial activities such as agriculture,
forestry, fishing, tourism13. Nikolai Astrup, a Norwegian MP, opposed Kevin Anderson & Alice Bows-
Larkin in a twitter dialogue saying,

“for a reasonable probability of avoiding the 2°C characterization of dangerous climate change the
wealthier nations need, temporarily, to adopt a de-growth strategy.” 11

Put simply, for the wealthier nations, “the necessary levels of 2°C mitigation and short-to-medium
term economic growth are incompatible”. 11

The Intergovernmental Panel on Climate Change (IPCC) was founded in 1988 to assess science
related to climate change on behalf of the United Nations. IPCC choose 2° C as the goal for limiting
global warming. Scientists and policymakers have long agreed that global warming beyond 2° C above
the pre-industrial average would pose large and escalating risks to human life 12.

The World Economic Forum (WEF) posits that environmental risks constitute four of the top five risks
the world is facing, and the five most likely global long-term risks are environmental. Assessment
report of the United States, published in 2018, cautioned that if greenhouse gases are not reduced,
climate change could severely interrupt the world's economies. Without significant and continued global
alleviation measures, climate change is expected to cause increasing losses to infrastructure and
property and impede economic growth over this century 13. All in all, Unsustainable economic growth
itself hinders the growth in future.

Moreover, deforestation resulting from economic development damages soil and makes areas more
prone to drought 8.
This further leads to lack of agriculture land which gives rise to food shortages that may result in
malnutrition.

Suggested Course of Action:

Can Economic growth be completely sustainable and harmless?
No. An uncomfortable truth is: Economic growth is ecologically unsustainable7.
This being clear that economic growth is not completely compatible with environmental sustainability,
we need to focus on what steps can minimize the degradation of natural environment and preserve the
maximum possible resources for future generations.
The Governments and National/International Environmental and Health organizations need to put a
clear emphasis on the need to achieve sustainable development. The United Nations Environment
Programme needs to pass a resolution stating what measures are mandatory for countries to maintain
sustainability hand in hand with economic growth. Worlds leading Economists and Environmentalists
should discuss the ongoing problems with economic growth concerning sustainable environment and
come to a conclusion and solution to it Organizations such as Earthjustice, Natural Resources Defense
Council (NRDC), 350.org, etc should work and research on new effective and easily applicable ways to
achieve sustainable growth. Governments have to ensure a slow and sustained economic growth by
enforcing effective policies. A viable budget should be set apart for investment in sustainability
programs. Locals should be educated about the ongoing global situation and encouraged to adapt a
sustainable lifestyle.

Source: (https://www.facebook.com/economicshelp.org, 2021) 8. (55 words)

The course of action suggested above will only be possible if the governments themselves are ready to
take actions to ensure a sustainable economic growth.
Evaluation of Sources:
I started my research by reviewing the UN’s Sustainable Development Goals 2030 2,14. I further looked
took into account other UN sources ie. United Nations Environment Programme. I used information
from World Bank’s Pakistan Development Update 2022 and some environmental pressure groups
including Friends of the Earth and Greenpeace. I also looked into the claims made by Worldwide
Fund for Nature. I used statistical information provided by International Energy Agency regarding the
global cost to achieve net-zero emissions. To understand different perspectives on the issue, I read
several articles published by individual researchers 4,7.11.13. Furthermore, I added material driven from
Intergovernmental Panel on Climate Change (IPCC) and World Economic Forum (WEF). I
researched the aims of several International environmental organizations and choose suitable few
(Earthjustice, Natural Resources Defense Council (NRDC), 350.org) while suggesting the course of
action.

Conclusion and Reflection:

My research suggests that economic growth can not completely incorporate sustainability. Before
starting my research, I had very limited amount of knowledge about this issue. Through my research I
became aware of different aspects of the relationship between sustainability and economic growth. I
now know that economic growth is not always and only good for a country, and it has negative impacts
too, specially on the environment and nature. I gained knowledge regarding the importance of
sustainable living and sustainable economic growth, by finding out the adverse consequences of
unsustainable growth. Having enough understanding on the causes behind this issue, I can play my part
in trying to resolve this issue. I believe it is very important to overcome this problem as soon as possible
or else the world will have to face permanent damages.

Total word count: 1994