An analysis of the economic mechanisms

In this report, I will outline the most relevant economic mechanisms that follow a technical efficiency gain in the context of environmental resources and the energy market. For many years, the impact of a decoupling from GDP growth and the consumption of natural resources on macroeconomic savings has been overestimated by both economists and politicians. It was widely believed that the overall reduction of production costs caused by an increase in production efficiency is more or less equal to the collective savings of an economy. In reality however, the consumption of natural resources and the environmental burden have continuously grown in almost every country within the course of the twentieth century, in spite of the ever-proceeding technological progress. Hence, the question why none or not all of the savings have actually been made is repeatedly raised by both scientists and politicians and is now a major subject to economic research. I will give an overview of the most recent surveys that examine the counter-rotating mechanisms of decoupling and rebound effects and will outline the positive and negative impacts they have on both the economy and the environment. Last but not least, I will raise questions how politics could take counteracting measures when defining goals for sustainable development.