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Prep 3 SS · Economics and Business Administration
The challenges of the Spanish economy in a globalised context · Democracy and the welfare state

Degrowth and the Sustainable Development Goals

Before you start, make sure you know: Collaborative, circular, social, and solidarity economy (High School Year 1 (semesters 1 and 2))

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. Think about the water supply in the Valley of Mexico or the pollution of the Santiago River in Jalisco. You will see what responses are proposed, from the Sustainable Development Goals to degrowth.

The Sustainable Development Goals

Block diagram with the three dimensions of the Sustainable Development Goals: economic, social, and environmental. economicpoverty, work socialhealth, education environmentalclimate, oceans

Some examples of the 17: SDG 1 (no poverty), SDG 4 (quality education), SDG 7 (affordable and clean energy), SDG 8 (decent work and economic growth), SDG 11 (sustainable cities and communities), SDG 12 (responsible consumption and production), SDG 13 (climate action).

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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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Match each local action to the SDG it promotes and justify the relationship: a free library, a bike lane, a soup kitchen, and solar panels at the sports center.

Match each local action to the SDG it promotes and justify the relationship: a free library, a bike lane, a soup kitchen, and solar panels at the sports center.

Solve

The ecological footprint and planetary limits

Comparison between what the planet regenerates and what humanity consumes: the consumption bar is 1.7 times taller, 70 percent higher. regenerated (100) consumed (170) +70%
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A textile company wants to align itself with SDG $12$ (responsible consumption and production). Propose three specific measures for its production chain and explain what…

A textile company wants to align itself with SDG $12$ (responsible consumption and production). Propose three specific measures for its production chain and explain what cost and benefit each one might have.

Solve

Green growth, degrowth, and decoupling

Decoupling: the GDP curve rises while the emissions curve falls. GDP emissions decoupling: GDP rises and emissions fall

Green growth relies on technology allowing us to grow while polluting less: decoupling. There are two types. In relative decoupling, emissions grow more slowly than GDP. In absolute decoupling, emissions fall even as GDP grows. For the climate, only the absolute kind is enough.

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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.
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

Responsible consumption and greenwashing

Contrast between a product with an official certified label and another with an unsupported "eco" claim, typical of greenwashing. labelofficialcertified "eco"no datagreenwashing

Responsible consumption is the other side of the coin: choosing durable products, repairing instead of throwing away, reducing food waste, and buying local, for example at the tianguis (open-air market) or from nearby producers.

When SDGs come into conflict

Tension between two goals: keeping 400 jobs versus having a pollution-free river. jobs400 positions clean riverlower emissions
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An industrial park employs $400$ people but discharges waste into the river and emits large amounts of CO₂. The municipality is hesitant between tightening environmental…

An industrial park employs $400$ people but discharges waste into the river and emits large amounts of CO₂. The municipality 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 analyze its timescales.
Solve
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A mountain village chooses sustainable tourism: a cap on visitor numbers, electric transport, local produce, and stable employment. a) Design four indicators (economic,…

A mountain village chooses sustainable tourism: a cap on visitor numbers, electric transport, local produce, and stable employment.

  1. a) Design four indicators (economic, environmental, and social) to evaluate the success of the model over five years.
  2. b) What risks of "success" could make it unsustainable (overcrowding, price increases)? Analyse them.
Solve
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Design a project for your school or neighbourhood aligned with two SDGs. a) Define the project, its measurable objectives, and its approximate budget. b) Explain how you…

Design a project for your school or neighbourhood aligned with two SDGs.

  1. a) Define the project, its measurable objectives, and its approximate budget.
  2. b) Explain how you would evaluate it after one year and what you would do if the indicators do not improve.
Solve

Back to the beginning: to bring consumption down from those $1.7$ planets to just one, the economy must choose between radically accelerating technological decoupling (green growth) or accepting a planned reduction of material consumption in rich countries (degrowth). Probably a combination of both will be needed.

Summary

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