Economic growth and environmental sustainability in more and less sustainable countries
Published in Sustainability and Economics
🌍 Sustainability and Growth: Different Paths to a Common Future
Why are some countries able to grow economically without harming the environment, while others seem trapped in a cycle of pollution and degradation? This question drove the authors of a recent study to compare 20 of the world’s most and least sustainable countries, uncovering how economic growth and environmental sustainability interact.
📈 What’s at Stake?
The debate on how to grow economies without damaging the planet is more urgent than ever. Some argue that wealth and technology are prerequisites for environmental protection, while others believe that early investment in sustainability is the true engine of long-term prosperity. This study investigates which idea holds or whether both can coexist, depending on context.
🌿 Two Worlds, Two Realities
Researchers divided the sample into two groups:
- More sustainable countries: e.g., Sweden, Denmark, UK
- Less sustainable countries: e.g., China, Iran, Qatar
They analysed data from 1990 to 2019, covering:
- GDP per capita (economic growth)
- CO₂ emissions
- Natural resource depletion
- Renewable energy consumption
🔍 What Did They Find?
- In more sustainable countries:
- Renewable energy use is strongly linked to economic growth.
- Growth leads to increased use of clean energy.
- Sustainability is seen as an investment, not a cost.
2. In less sustainable countries:
- Growth still heavily relies on fossil fuels.
- Higher GDP means more CO₂ and more resource depletion.
- Sustainability tends to follow economic development.
🔄 Who Drives Whom?
The big question: does growth lead to sustainability or vice versa?
- In developed countries, sustainability drives growth through green technologies and innovation.
- In developing countries, growth comes first and creates the conditions for future sustainability.
Conclusion: Both paths are valid, depending on a country’s starting point.
📊 How Was It Studied?
The authors used:
- Correlation and regression analysis
- Comparisons of average values
- Moderation models to see how sustainability levels shape the growth–environment relationship
All data came from the World Bank and was analysed in five-year intervals until 2019.
🧭 What Does It Mean in Practice?
For developed countries:
- Invest in renewable energy and green innovation.
- Environmental policies support long-term competitiveness.
For developing countries:
- Economic growth is key, but should be coupled with gradual sustainability efforts.
- International support and technology transfer are crucial.
🚧 Limitations and What’s Next
The study looked at only 20 countries and excluded post-2019 events like the COVID-19 pandemic. Also, it didn’t cover aspects like inequality, governance, or social factors. Future research should include more countries, updated data, and qualitative insights into political and institutional drivers.
🔚 Final Takeaway
There’s no one-size-fits-all path to sustainability. In high-income countries, sustainability fuels economic growth. In less developed nations, economic development often lays the groundwork for greener futures. Well-designed policies can turn this relationship into a virtuous cycle where growth and sustainability go hand in hand.
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