Are Energy Reductions Compatible with Economic Growth?

Abstract

Our planet faces several serious and urgent challenges to sustainability including, but not limited to, climate change; however, most researchers argue that technological solutions can solve these problems. This review first examines the prospects for decoupling environmental damages in general from economic growth, considered at the global level; then, it looks at whether the recent advances in information and communication technology (ICT) can help. It is argued that although absolute decoupling may have occurred in some countries—even after accounting for energy-intensive imports—it has not occurred at the global level, which is the relevant level for global sustainability problems. This conclusion is strengthened by the very high correlation over the past three decades found between global gross domestic product (GDP) and several parameters relevant for sustainability, particularly for atmospheric CO2 concentrations and ecological footprint as a function of GDP. ICT innovations relevant to energy use include smart grids and smart cities, especially smart urban transport. A review of recently published papers shows no definite findings of energy or carbon reduction, although some innovations show energy/carbon reduction potential if given strong policy support. Overall, it was concluded that the Earth’s sustainability challenges will probably need deep energy reductions, which in turn require profound sociopolitical changes.