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Diminishing returns of growth? Economic performance, needs satisfaction and ecological impacts of OECD welfare states

Paulsson, Alexander LU ; Koch, Max LU and Fritz, Martin (2024) In Critical Social Policy
Abstract
The environmental crisis, increased inequality and an aging population are likely to increase the demand for welfare services in the OECD countries. Economic growth has long been seen as a solution to these problems. However, this is no longer the case. Very few countries have managed to decouple economic performance from ecological footprints and greenhouse gas emissions. Even where this has been achieved, the rates of emission-decline are too slow to match the Paris climate targets. Consequently, interdisciplinary research is key to probe how welfare systems may cope with these challenges, and how welfare provision and economic growth may be decoupled. By drawing on the basic human needs approach and a unique set of data, we explore the... (More)
The environmental crisis, increased inequality and an aging population are likely to increase the demand for welfare services in the OECD countries. Economic growth has long been seen as a solution to these problems. However, this is no longer the case. Very few countries have managed to decouple economic performance from ecological footprints and greenhouse gas emissions. Even where this has been achieved, the rates of emission-decline are too slow to match the Paris climate targets. Consequently, interdisciplinary research is key to probe how welfare systems may cope with these challenges, and how welfare provision and economic growth may be decoupled. By drawing on the basic human needs approach and a unique set of data, we explore the social and ecological performances of OECD countries relative to their economic performances. While high-income countries display diminishing welfare returns as economic performance is not improving the satisfaction of health-related needs, the lower-income countries might yield significant surplus if moving to the level of moderate-income countries. However, the satisfaction of autonomy-related needs is so far strongly coupled to economic performance and thus much harder to achieve in an ecologically sustainable way. (Less)
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author
; and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
Degrowth, postgrowth, welfare systems, needs satisfaction, OECD
in
Critical Social Policy
publisher
SAGE Publications
external identifiers
  • scopus:85181251117
ISSN
0261-0183
DOI
10.1177/02610183231218971
project
Postgrowth Welfare Systems
Economic Elites in the Climate Change Transformation: Practices, justifications and regulations of unsustainable lifestyles in Sweden
language
English
LU publication?
yes
id
c9a0857c-aeca-427f-9b85-05e52ead1ad6
date added to LUP
2024-01-04 10:25:37
date last changed
2024-02-07 11:29:17
@article{c9a0857c-aeca-427f-9b85-05e52ead1ad6,
  abstract     = {{The environmental crisis, increased inequality and an aging population are likely to increase the demand for welfare services in the OECD countries. Economic growth has long been seen as a solution to these problems. However, this is no longer the case. Very few countries have managed to decouple economic performance from ecological footprints and greenhouse gas emissions. Even where this has been achieved, the rates of emission-decline are too slow to match the Paris climate targets. Consequently, interdisciplinary research is key to probe how welfare systems may cope with these challenges, and how welfare provision and economic growth may be decoupled. By drawing on the basic human needs approach and a unique set of data, we explore the social and ecological performances of OECD countries relative to their economic performances. While high-income countries display diminishing welfare returns as economic performance is not improving the satisfaction of health-related needs, the lower-income countries might yield significant surplus if moving to the level of moderate-income countries. However, the satisfaction of autonomy-related needs is so far strongly coupled to economic performance and thus much harder to achieve in an ecologically sustainable way.}},
  author       = {{Paulsson, Alexander and Koch, Max and Fritz, Martin}},
  issn         = {{0261-0183}},
  keywords     = {{Degrowth; postgrowth; welfare systems; needs satisfaction; OECD}},
  language     = {{eng}},
  month        = {{01}},
  publisher    = {{SAGE Publications}},
  series       = {{Critical Social Policy}},
  title        = {{Diminishing returns of growth? Economic performance, needs satisfaction and ecological impacts of OECD welfare states}},
  url          = {{http://dx.doi.org/10.1177/02610183231218971}},
  doi          = {{10.1177/02610183231218971}},
  year         = {{2024}},
}