ifo Viewpoint

Can Economic Growth and Ecological Sustainability Coexist?

Clemens Fuest
ifo Institute, Munich, 2023

ifo Viewpoint No. 250

Is long-term economic growth compatible with ecologically sustainable development? This question stands as one of the most debated issues of our time. Over the past decades, growth driven by economic liberalization and globalization has brought prosperity to billions and reduced global poverty. However, this positive trajectory has come at a high cost to the environment and the depletion of natural resources. The limitations of economic growth at the expense of the environment are evident. Sustainable economic prosperity can only be achieved in the long run if it is coupled with ecological sustainability.