Decoupling Economic Growth from Environmental Impact

This lecture discusses the concept of decoupling, which refers to the ability to sustain economic growth while reducing environmental impacts. The instructor explains the difference between relative and absolute decoupling, emphasizing that relative decoupling occurs when resource use increases at a slower rate than economic activity, while absolute decoupling happens when resource use decreases despite economic growth. The lecture includes examples from the power sector and freight transportation in Switzerland, illustrating how CO2 emissions can be reduced through improved efficiency and policy measures. The instructor also introduces the IPAT framework, which decomposes environmental impact into factors such as population, affluence, and technology. The relationship between energy efficiency and decoupling is explored, highlighting the importance of resource intensity and efficiency in achieving sustainability goals. The lecture concludes with a discussion on the necessary conditions for achieving absolute decoupling and the challenges posed by ongoing economic and population growth.