185_Can We Prosper Without Growth?

Adventures in Sustainable Living Podcast

Episode 185

Can We Proper Without Growth?

Kate Raworth, an English economist with Oxford University, wrote that “Reversing consumerism’s financial and cultural dominance in public and private life is set to be one of the twenty-first century’s most gripping psychological dramas.” 

What is obvious is that economic growth is directly tied to resource consumption. Both are hand in hand with environmental degradation and climate change. Despite this obvious trend consumerism continues to be deeply ingrained.  

Even though there are communities of people that live simply and offer inspiration for social innovation, the question is whether or not this is possible on a global scale. In this episode I want to examine whether or not we can decouple economic growth from resource consumption. 

So join me for E 185 which is called “Can We Prosper Without Growth?”

Welcome back everyone to the Adventures in Sustainable Living podcast. This is your host Patrick and this is E185 Can We Prosper Without Growth?

As is usual, let’s start out with the sustainability question of the week because this goes right along with this episode. 

Explain the concept of a circular economy? 

Good news story of the week. 

And this story comes out of Europe and focuses on the dramatic positive ecological effects of the reintroduction of a herd of bison and how large animals affect the carbon cycle. 

There was a recent study that looked at the effects that the European bison has on the ability of the Romanian forests to store carbon. It turns out that the bison are “climate heroes.” 

In 2014 WWF Romania reintroduced a herd of 100 bison into the Tarcu mountains in Romania. The herd has since grown to 170 animals. It turns out that all their rooting around, stomping, and breaking of the landscape are an important part of the vitality of the ecosystem and promotes carbon storage. The study provides proof that the European bison is actually a keystone species, meaning a species that helps to hold the ecosystem together. 

The study revealed that 170 animals living in a 50 square kilometer area had the potential of increasing the carbon loading of that environment by as much as 10%. That additional carbon sequestering ability is the equivalent of taking 54,000 gas powered vehicles off the road. And there are only 170 animals. This study also helps to emphasize the importance of grasslands for carbon sequestration. 

Professor Schmitz and his team of researchers are also looking at nine other animals including the muck oxen, river otters, and forest elephants. According to Professor Schmitz, “Many of them show similar promise as the bison, often doubling an ecosystem’s capacity to draw down and store carbon.”

So, the round of applause this week goes to Professor Schmitz and the European bison. 

Now let’s move on to this weeks episode. 

I dare say that there are few people in our culture that actually sit around and think about economics. Even though economics is truly what governs our nation, our states, cities, local communities as well as our daily lives, we never really think about it. All we know is that we go to work, bring home a paycheck and use that to purchase what we need. The only time we think about economics is when there is a downturn, which of course affects almost everything. People lose their jobs, their money, their homes, and sometimes their life savings. 

Furthermore, what most people do not realize is that it is the very economic model that runs our lives that is pushing us past the planetary boundaries and endangering the very existence of humanity. There are some very smart people that are focusing on our mistakes but the question is whether or not we will learn from this and do something different. Most long-term data says we will not. 

Key Points

So what I want to examine in this episode is: 

-Growth is culturally, politically, institutionally ingrained

-There are communities that live very simply and have accomplished some remarkable things. Perhaps we can gain some inspiration from these communities. 

-The European Green Deal may provide some inspiration for change 

-Positive change and innovation requires us to address these cultural and institutional barriers in order to change our consumption and social practices. 

-Is the circular economy the answer?

-Discuss a few things that each of can do and how we can apply this to our daily lives. 

Now if you pay attention to the condition of our world and where we are headed, you already know that our world is changing very rapidly. It is as if we are at a tipping point and yet we continue on as if there are no worries. 

Scientific experts are referring to our rapid loss of biodiversity as the next great extinction event. Micro-plastics and forever chemicals are now in every corner of the world including our bloodstream. Widespread pollution further threatens our natural resources. And all of these warning signs are directly tied to economic activities and economic growth. Maybe the only thing that is for certain is that human civilization is profoundly unsustainable. 

But virtually everyone knows that this dynamic needs to change. On a global scale scientist, governments, and non-governmental organizations (NGOs) are all ruminating over new ideas, policies,  narratives and alternative perspectives on  economic growth and human progress that would transform our culture into something more sustainable. 

But if we truly take a closer look at track record of civilization you will quickly notice that the decoupling of economic growth from resource consumption is not happening. But if you look at the deeper questions of how this is going to happen and the collateral affects on our daily lives this lack of change is understandable. For example, how can society continue to grow in quality instead of quantity. How do we do this in a more equitable way? What are we willing to give up in order to achieve this ambitious goal of sustainability. 

The bottom line is that this is going to require some real creativity. Reaching for sustainability does not have to depend on economic growth. But I do think that if economic growth is not or cannot be completely decoupled from resource consumption, then what we should at least consider a lifestyle of minimalism. Truly there is much to be gained from minimalism from both a personal well being and an environmental perspective. But people are going to have to accept things such as: 

-Living in a smaller home. This usually means owning less stuff. 

-Reducing electricity consumption, which goes along with the consumption of natural resources. 

-Living with intention, which is to say a life with direction, clarity, and purpose

-Prioritizing simplicity. 

-Quality over quantity. Consumerism is obviously not the answer. 

-Embrace the 90/90 rule of minimalism. The 90/90 rule is a decluttering requires you to ask yourself two questions about anything you own. Have you used it in the past 90 days? If not, will you use it in the 90 days ahead? 

While this may sound daunting, there are communities both in the US and the EU that are great examples of what can be accomplished. 

Dancing Rabbit Ecovillage in Missouri was started in 1997. People are dedicated to building a place where people respect the environment. They follow sustainability guidelines, grow a lot of their own food. 

Sawyer Hill EcoVillage in Berlin, Mass. There are dedicated buildings such as a dining hall, workout areas, play areas for children, and even a 25 acre conservation easement. 

Villages at Crest Mountain is close to one of my favorite communities, Ashville, North Carolina. Homes are built around a central court yard of gardens and open space.

And there are a number of others in the US. 

But, in general, the EU has truly achieved remarkable levels of prosperity in the face of world class social, health and environmental standards which are some of the highest in the world.  And then there is the European Green Deal. This is a set of polices that address the reality that climate change and environmental degradation are significant threats to Europe and the rest of the world. These polices are designed to ensure the following three things:

-no net emissions of greenhouse gases by 2050

-economic growth decoupled from resource use

-no person and no place left behind 

But the question is whether or not an absolute decoupling of economic growth from resource consumption is even achievable on a global scale and on a long term basis. Data collected from 1970 to 2018 suggests this is not happening and may not be possible. 

Global domestic product, material footprint and greenhouse gas emissions have all increased rapidly over time. During the period observed population growth was the main driver of increased consumption. However, since the turn of the century, the emergence of an affluent middle class has been the biggest driver. Furthermore, technological development has also increased resource consumption instead of resulting in the exact opposite. It has become increasingly obvious that a true reduction in environmental impact is going to require a fundamental transformation to a different type of society and economy. 

Circular model

One of my first thoughts on this topic was that the answer was easy. It would require a shift to a circular economy. As it turns out, my thoughts were relatively naive because a circular model has significant limitations. 

The circular model is built on three key economic principles:

-Designing out waste and pollution

-Keeping products and materials in use as long as possible

-Regeneration of natural systems

If designed properly, a circular economy has obvious benefits. In theory this economic model is sustainable. It solves several pressing issues at an economical, societal and natural level. Reuse of material alone would produce economic savings in the billions of dollars. This in turn would greatly reduce the pressures on natural resources. It would foster innovation for new adaptive long-lasting products and even create jobs. Consumers would benefit from having durable products that last longer. 

While this sounds fantastic, the reality is that this model has limitations for sustainability. The reason is that modern societies requires an enormous input of materials. The reality is that less than 12% of these materials are ever recycled. 

Presently, a 100% circular economy is truly a utopian concept mainly because there is waste in everything we do. Our current global economy is about 12 % circular. A downsized economy to match a 12% input of materials would be extremely slow. However, there is a bit of optimism here. 

Given the obvious benefits of the circular model, portions of the economy certainly could become fully circular or at least partially so. What this insight points to is the need to reframe societal notions of progress in broader terms instead of focusing solely on consumption. 

Alternative Economies

-De-growth: this is a more radical approach that emphasizes the need for reduced production and consumption

-Post growth: This thought process involves decoupling personal well-being from possession and monetary gain, meaning economic growth

-Green growth: Economic growth within the limitations of our natural resources

-Doughnut economics: an economic model that addresses the needs of the present human population within the confines of developing a sustainable future. 

But despite progressive environmental degradation as the result of our present economic model and given these alternatives to our present economy it is worth noting that modern governments and societies have embraced on-going economic growth. Environmental and social problems were just on the sideline. 

As a result, on-going economic growth is culturally, politically, and institutionally engrained. This is often seen in the fact that any government that is considered legitimate is upheld and reinforced by their ability to deliver economic growth and provide employment. 

The next big challenge will be to bring progressive thinking into mainstream and translate these ideas into new ways of living that are inline with a sustainable future for the entire planet. 

There are a range of communities, as mentioned earlier, that promote lifestyles that are outside what is considered mainstream. They consume less, are less materialistic, some focus on environmentalism. But most seek a lifestyle that is simpler. This can be seen with the Amish, the Quakers, the eco villages, as well as innumerable online communities. 

Furthermore, it is interesting to note that economic growth is directly connected to health and well-being and things such as life expectancy and educational level. Due to economic growth extreme poverty has fallen from 36% in 1990 to 10% in 2010. 

On the other side of the economic fence are people such as Giorgos Kallis, an ecological economist at the Autonomous University of Barcelona. He says, “There is no way to have your cake and eat it too, here. If humanity is not to destroy the planet’s life support systems, the global economy should slow down.” 

In 1859 John Stuart Mill stated that he was not charmed with the  established ideal of human life being that of constant struggle. He went on to say, and I quote: 

“It is scarcely necessary to remark that a stationary condition of capital and population implies no stationary state of human improvement. There would be as much scope as ever for all kinds of mental culture and moral and social progress; as much room for improving the Art of Living, and much more likelihood of its being improved.”

And this begs the question of what it would be like to live in a stationary world. Well, there would be no inflation, no stock market crashes, no housing bubbles that burst and cause people to loose millions of dollars and no survival kits would be necessary.

Tim Jackson, a professor of sustainable development at the University of Surrey, in England, advises that Western countries should shift their economies from mass-market production to local services that could be less resource-intensive.” Jackson also says “People can flourish without endlessly accumulating more stuff. Another world is possible.”

And let’s hope that other world starts blooming here soon. Over the last century the G.D.P per person in the U.S. have has gone up more than 6 fold. Finally people are starting to question the wisdom of consuming more and more stuff year after year. On one hand we have alarming climate change and environmental threats. On the other hand we keep buying more stuff.  

It may be painful to accept but this misguided pursuit of economic growth has substantially contributed to mortality rates, political polarization and a rise in inequality. We live in a society where the benefits of growth are mainly captured by the elite.

Obviously this economic debate can go on forever. Most likely the elite of the world that control the fate of the little people will still be debating how to make such changes while protecting their own investments while in the backdrop the world creeps closer and closer to a tipping point. 

For me the answer is clear. I can’t change the world but I can change myself. I can go paperless, conserve electricity, run my home off of renewables, eat less meat, avoid single use plastics, drive less, recycle, conserve water, reduce my food waste and much more. 

But I also believe that not only can I change myself but I can also convince at least one other person to do the same. And maybe that is where we start. We start living a more sustainable life and we then convince at least one other person to do the same. We start talking to other people about changing how they live. 

My best example that reinforces the power of change that can be brought on by one person is the country of Iceland. It all started decades ago when one farmer started using hot geothermal water seeping out of the ground to heat his farm house. Other people took notice, improved on his idea and soon developed heating districts. Eventually there were over 500 such operations around the country producing heat and electricity. Then the government got involved and even provided funding for the development of other projects. The end result is that Iceland is now run almost entirely off of renewable energy. And it all started with the innovation of one smart farmer. 

If you think you cannot make a difference, you actually can. Most of us can live on substantially less than what we do. At the homestead, between the two cabins we only have 1000 square feet of living space. Everything is run off of solar. We use approximately 40 kilowatt hours of electricity per month while the average home uses 700 to 800 kilowatt hours. We use approximately 600 gallons of fresh water a month while the average home uses 300 gallons of water per day. And the best part is that we have all modern amenities and truly do without nothing. 

There are those who believe that given the right policies and continued technological advances that we can enjoy perpetual growth while reducing pressures on natural resources and reducing carbon emissions. Even a 2018 report by the Global Commission on the Economy and Climate stated that “We can have growth that is strong, sustainable, balanced, and inclusive.” But then I would point back to the data collected from 1970 to 2018 that points to the fact that we are doing just the opposite. 

So maybe instead of chasing the growth mirage we should be focusing on specific measures with proven benefits. Maybe instead of always focusing on profits we should focus more on the people and the planet. Fund further expansion of renewables since that energy source is now cheaper than fossil fuels. Place clear and strict limitations on the production of plastics. Fund environmental restoration and regeneration. Fund public education programs on the benefits of sustainable living. Help the poorest members of society gain access to health care, education, and social advancement. 

These are thing we all should be doing, practicing teaching and talking about. So talk about it. Often times a sustainable life all starts because of a good conversation. And you know, you should never underestimate the power of a good conversation.

Now let’s wrap up this episode by answering the sustainability question of the week. 

Explain the concept of a circular economy. 

A circular economy is a model of production and consumption that involves reusing, refurbishing, recycling, sharing and leasing so that existing products are used as long as possible. Because of this, the lifecycle of every product is extended and we minimize waste production and the use of additional resources.

Well folks I hope you have enjoyed this episode. I bet you never thought that economics could be so exciting. I also hope you will join me again next week. Until then don’t forget to check out my redesigned homepage for the podcast. It can be at adventuresinsustainableliving.com You can also get a free download of 200 sustainability questions and answers. So, go check it out. 

Until next week, always remember to live sustainably because this is now we build a better future. 

Patrick