From Classical And Neoclassical Economic Growth To Degrowth In Europe. Challenges For Public Administration

The world is facing with challenges that were hard to imagine a few decades ago. The last century was one in which the world experienced the enthusiasm of progress as a result of the implementation of methods proposed by neoclassical growth theory. The effects of climate change cause us to reflect, asking ourselves whether neoclassical growth has reached its limits. We answer to this question by analyzing, with the simple and multiple linear regression method, the relationship between economic growth, measured by GDP per capita, and greenhouse gas emissions, on the EU28, for the period 1980-2016 when UK was European member. We show that the European economic growth depends, overwhelmingly, on activities that produce negative spillovers in the form of emissions. The relationship between growth and total emissions, on the one hand, and between growth and emissions by categories, on the other, is positive and strong. The activities that produce natural gas emissions have the biggest influence on European economic growth followed by those from coal and coke and, by ones from petroleum and derivatives. We notice a great heterogeneity between the European states both of all EU28 members and within the four groups that we formed depending on GDP per capita growth. This conclusion shows that a common emission reduction policy in EU28 is not possible. The individual economic characteristics must be taken into account for the adoption and for the implementation of environmental and development policies. As a result of this study we will see to what extend Europe is in position to choose between continuing on the same path of progress or opting to apply the principles of degrowth economy. In the current crisis situation, the role of the public administration grows but the challenges will be greater than ever, the objective pursued in the future being not only economic growth but also the pollution reduction, even degrowth principles, in a very heterogeneous and sick Europe, where it is not possible to apply common environmental policy measures.