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The challenges of the Spanish economy in a globalised context · Democracy and the welfare state

Degrowth and the Sustainable Development Goals

Humanity today consumes as if it had $1{,}7$ planets. That figure sums up the problem: the economy keeps growing, but the planet does not expand along with it. You will see what responses are proposed, from the Sustainable Development Goals to degrowth proposals.

Before you start, make sure you know: Collaborative, circular, social and solidarity economy (4th ESO)
Before you start, make sure you know: Compound interest and percentage change (3rd ESO)

The Sustainable Development Goals

Block diagram showing the three interconnected dimensions of the Sustainable Development Goals: economic, social and environmental. economicpoverty, work socialhealth, education environmentalclimate, oceans
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Explain what the Sustainable Development Goals are, who promotes them, and name three of them, describing their content in one sentence.

Explain what the Sustainable Development Goals are, who promotes them, and name three of them, describing their content in one sentence.

Solve
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The $17$ SDGs are grouped into three broad dimensions: economic, social and environmental. Classify these four goals into their main dimension: no poverty, climate…

The $17$ SDGs are grouped into three broad dimensions: economic, social and environmental. Classify these four goals into their main dimension: no poverty, climate action, decent work and economic growth, and life below water. What does that classification show about how broad the concept of sustainability is?

Solve
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Sustainable development was defined as "meeting the needs of the present without compromising the ability of future generations to meet their own". Explain the…

Sustainable development was defined as "meeting the needs of the present without compromising the ability of future generations to meet their own". Explain the definition with a forestry or fishing example: what does exploiting a resource "without mortgaging" those who come after mean?

Solve

The ecological footprint and planetary boundaries

Comparative chart of the planet's biocapacity and the global ecological footprint, highlighting the date on which Earth Overshoot Day occurs. regenerated consumed +70%
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What is the ecological footprint and what does it mean that humanity consumes "as if it had $1,7$ planets"? Explain which resources are being used up faster than the…

What is the ecological footprint and what does it mean that humanity consumes "as if it had $1,7$ planets"? Explain which resources are being used up faster than the Earth regenerates them and what "Earth Overshoot Day" is.

Solve
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What is energy poverty (not being able to keep your home at an adequate temperature or pay for basic utilities)? Describe the case of an affected family and explain…

What is energy poverty (not being able to keep your home at an adequate temperature or pay for basic utilities)? Describe the case of an affected family and explain which SDGs it relates to (affordable energy, no poverty, health).

Solve

Green growth, degrowth and decoupling

Time graph of economic decoupling in which the GDP curve rises while the greenhouse gas emissions curve falls. GDP emissions decoupling: GDP rises and emissions fall
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What does the degrowth theory advocate? Explain how it differs from an economic recession and why its proponents stress this distinction so strongly.

What does the degrowth theory advocate? Explain how it differs from an economic recession and why its proponents stress this distinction so strongly.

Solve
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The figure shows the trend of GDP and CO₂ emissions of an imaginary country over ten years, using index numbers where year $1$ equals $100$. a) Describe what the graph…

The figure shows the trend of GDP and CO₂ emissions of an imaginary country over ten years, using index numbers where year $1$ equals $100$.

index (year 1 = 100) years 100 GDP emissions
  1. a) Describe what the graph shows: is economic growth "decoupled" from emissions?
  2. b) Explain what would need to happen to both curves for growth to be genuinely green.
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A country grows by $3\ \%$ a year and manages to make its emissions fall by $1\ \%$ a year. Its climate target is to cut emissions by half within $30$ years. a)…

A country grows by $3\ \%$ a year and manages to make its emissions fall by $1\ \%$ a year. Its climate target is to cut emissions by half within $30$ years.

  1. a) Calculate what percentage of the initial level emissions remain after $30$ years of falling by $1\ \%$ a year (you may use a calculator or estimate year by year). Does the country meet its target? Roughly what annual rate of decline would be needed?
  2. b) Draw the conclusion for the debate between "green growth" and "degrowth": what does this number say about the necessary speed of decoupling?
Solve

Responsible consumption and greenwashing

Infographic contrasting a product with verified environmental certification against another with misleading greenwashing claims. labelofficialcertified "eco"no datagreenwashing
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What is "greenwashing"? Give an example of a suspicious advertising campaign (an oil company advertising its three planted trees, an uncertified "natural product") and…

What is "greenwashing"? Give an example of a suspicious advertising campaign (an oil company advertising its three planted trees, an uncertified "natural product") and give three clues for detecting it (vague data, invented labels, the real share of "green" in the company).

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A fair-trade coffee brand costs $30\ \%$ more than the supermarket's conventional coffee. a) Which SDGs does fair trade promote and through what mechanisms (a minimum…

A fair-trade coffee brand costs $30\ \%$ more than the supermarket's conventional coffee.

  1. a) Which SDGs does fair trade promote and through what mechanisms (a minimum price to the producer, working conditions, premiums for the community)?
  2. b) Set out the consumer's dilemma (price versus impact) and reason what information you would ask for on the label to decide whether the mark-up is justified.
Solve
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In a supermarket, you find two laundry detergent options: Detergent A (conventional): costs $3,20\text{ €}$ ($0,08\text{ €}$ per wash). It contains non-biodegradable…

In a supermarket, you find two laundry detergent options:

  • Detergent A (conventional): costs $3,20\text{ €}$ ($0,08\text{ €}$ per wash). It contains non-biodegradable petroleum derivatives, and its virgin plastic packaging comes from a plant located $4.000\text{ km}$ away.

  • Detergent B: costs $7,80\text{ €}$ ($0,195\text{ €}$ per wash). It has official EU Ecolabel certification, locally sourced plant-based raw materials, and $100\ \%$ recycled cardboard packaging.

Next to them, a third brand costs $6,50\text{ €}$ and features a label with leaf illustrations and the phrase "natural formula", without any official certification.

  1. a) Apply Life Cycle Assessment (LCA) to compare detergents A and B: identify the specific negative externalities in the extraction, transport, use, and end-of-life phases, and justify why the $3,20\text{ €}$ price of option A constitutes a market failure due to the underestimation of social costs.
  2. b) Interpret the third brand using the economic theory of asymmetric information: explain why greenwashing arises in unregulated markets and what adverse selection effect it can cause for producers who genuinely invest in sustainability.
  3. c) Design an economic policy proposal (combining a Pigouvian tax and a mandatory certification standard) aimed at correcting price signals on store shelves to promote responsible consumption (SDG 12).
Solve

When the SDGs come into conflict

Diagram showing the tension between two conflicting goals: keeping 400 jobs versus the demand for an unpolluted river. jobs400 jobs clean riverlower emissions
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An industrial estate employs $400$ people but discharges waste into the river and emits large amounts of CO₂. The local council is hesitant between tightening…

An industrial estate employs $400$ people but discharges waste into the river and emits large amounts of CO₂. The local council is hesitant between tightening environmental regulations or protecting jobs.

  1. a) Frame the conflict as a clash between two SDGs and identify them.
  2. b) Propose a solution that does not force a choice between jobs and the planet, and analyse its timescales.
Solve
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A village is debating whether to install a large solar farm on what is now farmland. a) Which SDGs does the project promote (affordable and clean energy, climate action)…

A village is debating whether to install a large solar farm on what is now farmland.

  1. a) Which SDGs does the project promote (affordable and clean energy, climate action) and which can it put under strain (food production, life on land)? Identify them and explain the clash.
  2. b) What conditions would you set to accept it (agrivoltaics combining crops and panels, residents sharing in the benefits, restoring the land)? Justify each condition.
Solve
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Observe the following data for an advanced economy: between 2005 and 2023, its GDP grew by $18\ \%$ and its direct CO₂ emissions fell by $22\ \%$. However, its total…

Observe the following data for an advanced economy: between 2005 and 2023, its GDP grew by $18\ \%$ and its direct CO₂ emissions fell by $22\ \%$. However, its total ecological footprint (which includes the impact of imported manufactured goods) grew by $6\ \%$, and absolute consumption of material resources remained stagnant.

  1. a) Critically analyze whether these data support the "green growth" or the "degrowth" hypothesis: distinguish between relative and absolute decoupling, and interpret what role Jevons' paradox (the rebound effect) and the international offshoring of polluting production play in this discrepancy.
  2. b) An international committee proposes to legally mandate a GDP growth rate of zero (economic freeze) immediately for all countries in the world. Refute the viability and economic fairness of this proposal, distinguishing its impact on mature high-income economies versus developing economies with high poverty rates.
Solve

Back to the beginning: To bring consumption down from those $1{,}7$ planets to just one, the economy must choose between radically speeding up technological decoupling (green growth) or accepting a planned reduction in material consumption in rich countries (degrowth).

Summary

See all the exercises in this section