Energy, Economic Growth and Environmental Sustainability Five Propositions.docVIP

Sustainability 2010, 2, 1784-1809; doi:10.3390/su2061784 OPEN ACCESS sustainability ISSN 2071-1050 /journal/sustainability Article Energy, Economic Growth and Environmental Sustainability: Five Propositions Steven Sorrell Sussex Energy Group, SPRU—Science and Technology Policy Research, University of Sussex, Sussex House, Brighton, BN1 9QE, UK; E-Mail: s.r.sorrell@sussex.ac.uk; Tel.: +44-1-273-877-067; Fax: +44-1-273-685-865 Received: 1 May 2010; in revised form: 7 June 2010 / Accepted: 9 June 2010 / Published: 18 June 2010 Abstract: This paper advances five linked and controversial propositions that have both deep historical roots and urgent contemporary relevance. These are: (a) the rebound effects from energy efficiency improvements are significant and limit the potential for decoupling energy consumption from economic growth; (b) the contribution of energy to productivity improvements and economic growth has been greatly underestimated; (c) the pursuit of improved efficiency needs to be complemented by an ethic of sufficiency; (d) sustainability is incompatible with continued economic growth in rich countries; and (e) a zero-growth economy is incompatible with a fractional reserve banking system. These propositions run counter to conventional wisdom and each highlights either a ―blind spot‖ or ―taboo subject‖ that deserves closer scrutiny. While accepting one proposition reinforces the case for accepting the next, the former is neither necessary nor sufficient for the latter. Keywords: rebound effect; steady-state economy; monetary reform 1. Introduction This paper questions the conventional wisdom underlying climate policy and argues that some long-standing and fundamental questions regarding energy, growth and sustainability need to be reopened. It does so by advancing the following propositions:  Sustainability 2010, 2 1785 1. The rebound effects from energy