Help! Six types of degrowth
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The document summarizes six different interpretations of the concept of "degrowth": 1) GDP degrowth, 2) consumption degrowth, 3) work-time degrowth, 4) radical degrowth, 5) physical degrowth, and 6) GDP fetishism degrowth. It analyzes each interpretation and argues that types 1, 2, and 4 are not very convincing, while type 5 is not new. It concludes that type 3 makes the most sense and that focusing on effective environmental policies and democratic support for such policies is more important than whether they lead to GDP growth or degrowth.
![2. Consumption degrowth
In quantity not value terms
Hoped to cause sustainable resource use & pollution
Ineffective and inefficient way to reach
environmental sustainability: underrates shift from
dirty to clean consumption (again composition neglected)
Two approaches to realize consumption degrowth:
(voluntary) frugality likely to reach the masses?
equal individual quota politically feasible?
3. Work-time degrowth
Increased labor productivity has been mainly used to
consume more rather than to work less
Working less means less production & lower wages,
so less consumption, but also less work stress and
more happiness due to more leisure and time for
family and friends, certainly beyond a threshold
income (finding of happiness research)
Less work-time is concrete, one-dimensional aim
unlike less consumption (multidimensional)
Less working/income limits consumption rebound
4. Degrowth as radical change of
the economy
Ethics, values, finance, markets, work/jobs, money,
or even profit-making & ownership
Escaping from the [capitalist] economy (Fournier 2008)
Grand ideas without thorough supporting analysis
No systemic solutions/instrumentation, unclear how to
upscale from niche to society
Humanistic left-wing ideology attractive: equality,
solidarity, citizenship, locality, good life
Convergence to new system much time & unsure
to meet environmental aim (no ecological imperative)
Notably climate change demands urgent, simpler
strategy: hard environmental constraints to which
economy will adapt
2](https://image.slidesharecdn.com/degrowthlecture-jvandenbergh-100411120953-phpapp01/85/Help-Six-types-of-degrowth-2-320.jpg)
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Help! Six types of degrowth
- 1. Help! Six types of degrowth Jeroen van den Bergh ICREA, Barcelona & Universitat Aut嘆noma de Barcelona & VU University Amsterdam Interpretations of degrowth 1. GDP degrowth 2. Consumption degrowth 3. Work-time degrowth 4. Radical degrowth 5. Physical degrowth 6. GDP fetishism degrowth (GDP agrowth) 1. GDP degrowth Most logical, immediate interpretation to outsiders. Useful because consistent with use of term (economic) growth by media, economists & politicans But blunt instrument of environmental policy Dirty degrowth? Smaller not necessarily more beautiful Emphasis on size, neglect of composition: shift from dirty to clean inputs & outputs Moreover reversal of causality: effective environmental regulation will change composition, and will affect GDP growth possibly degrowth. 1
- 2. 2. Consumption degrowth In quantity not value terms Hoped to cause sustainable resource use & pollution Ineffective and inefficient way to reach environmental sustainability: underrates shift from dirty to clean consumption (again composition neglected) Two approaches to realize consumption degrowth: (voluntary) frugality likely to reach the masses? equal individual quota politically feasible? 3. Work-time degrowth Increased labor productivity has been mainly used to consume more rather than to work less Working less means less production & lower wages, so less consumption, but also less work stress and more happiness due to more leisure and time for family and friends, certainly beyond a threshold income (finding of happiness research) Less work-time is concrete, one-dimensional aim unlike less consumption (multidimensional) Less working/income limits consumption rebound 4. Degrowth as radical change of the economy Ethics, values, finance, markets, work/jobs, money, or even profit-making & ownership Escaping from the [capitalist] economy (Fournier 2008) Grand ideas without thorough supporting analysis No systemic solutions/instrumentation, unclear how to upscale from niche to society Humanistic left-wing ideology attractive: equality, solidarity, citizenship, locality, good life Convergence to new system much time & unsure to meet environmental aim (no ecological imperative) Notably climate change demands urgent, simpler strategy: hard environmental constraints to which economy will adapt 2
- 3. 5. Physical degrowth Isnt this trivial? Dont we all want this? But be careful: Environmentally/resource relevant physical dimensions Entropy argument (G-R) often simplistically used Old wine in new bottles: sustainable development, environmental regulation, H. Dalys minimal throughput. Does labelling these old ideas as degrowth deliver any new insights about environmental policy? Some assume physical degrowth = GDP degrowth But past (weak env. regulation) doesnt reflect future Intermediate conclusion Degrowth types 1, 2 and 4 not very convincing, while 5 isnt new. Type 3 makes most sense Better worry about effective environmental policies and getting democratic-political support for these Whether such policies will then give rise to GDP growth or degrowth should be irrelevant, as GDP (per capita) is not a good proxy of social welfare I agree though with Hueting: effective environmental regulation is likely to result in GDP degrowth. But dont reverse the causality (as in degrowth type 1) 6. Degrowth as opposing growth fetishism GDP fundamental problem, not growth GDP growth good in some periods / countries but growth not generally necessary or sufficient for progress degrowth not necessary or sufficient for sustainability also dirty degrowth possible Goal of unconditional GDP growth is a constraint on our search for progress frustrates good policies (climate, labour, health, public utilities). neoliberal ideology/tyranny of growth (Fournier 2008), GDP fetishism (Stiglitz 2009) But dont fall in the trap of replacing this by GDP degrowth fetishism (i.e. degrowth type 1) 3
- 4. The GDP paradox Not useful to spend more time on criticizing growth or GDP: has proven to be an ineffective strategy (Galbraith, Mishan, Hueting, Nordhaus/Tobin, Hirsch, Scitovsky, Daly, etc.) Better try to understand the reasons for persistent support of the GDP indicator: Despite all theoretical and empirical criticism of GDP (per capita) as a social welfare and progress indicator, its role in economics, public policy, politics and society remains influential Explanation of the paradox Many academic economists accept the criticism of the GDP indicator but im/explicitly deny its relevance This denial comes in two forms. 1. a belief that the impact of GDP information on economic reality is modest 2. a belief that despite its shortcomings, GDP still provides useful information My proposal Without GDP no measurement of growth => GDP growth irrelevant - not against & not in favour but indifferent or neutral Degrowth (esp. type 1) gives too much credit to GDP. Agrowth as in atheism more precise (Latouche 2010) Combine degrowth of types 5 & 6: reduce physical throughput (Daly) & ignore GDP information => Relax about (de)growth 4
- 5. More info J.C.J.M. van den Bergh (2009). The GDP Paradox. Journal of Economic Psychology 30(2): 117135. J.C.J.M. van den Bergh (2010). Relax about GDP Growth: Implications for climate and crisis policies. Journal of Cleaner Production, 18(6): 540-543. J.C.J.M. van den Bergh (2010). Six types of degrowth and a plea for agrowth. Mimeo. 5