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The tension between economic growth and environmental sustainability is one of the defining challenges of the 21st century. This lesson examines the economic frameworks for understanding environmental constraints on growth, the concept of sustainable development, and the policies available to reconcile prosperity with environmental protection.
Traditional GDP growth has historically been associated with increased environmental degradation:
| Environmental Problem | Link to Economic Growth |
|---|---|
| Climate change | Burning fossil fuels for energy, transport, and industry increases CO₂ emissions. Global CO₂ concentrations have risen from 280 ppm (pre-industrial) to over 420 ppm (2023) |
| Resource depletion | Growth increases demand for non-renewable resources (oil, gas, minerals) and renewable resources used unsustainably (fisheries, forests) |
| Pollution | Industrial production, agriculture, and transport generate air, water, and soil pollution |
| Biodiversity loss | Land-use change (deforestation, urbanisation) destroys habitats. The WWF Living Planet Report (2022) estimates a 69% decline in monitored wildlife populations since 1970 |
| Waste generation | Higher consumption generates more waste, including plastics that persist in the environment for centuries |
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