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Growth, Degrowth, or Green Growth? In Search of a Better Paradigm

Edenhofer, Ottmar; Jakob, Michael

The central question for economic policy is not growth, green growth, or degrowth, but whether there is over‐ or underinvestment in common pool resources. Continued economic growth seems feasible, at least from the perspective of climate change mitigation, provided that externalities are properly addressed. Economic growth cannot be a goal in itself. But it could help to attain desirable objects (i.e. happiness, prosperity, etc.). Therefore, public policy should not primarily be concerned with growth, but with welfare. Different members of society do not necessarily have to agree on a definition of welfare. But they have to agree on how to manage common pool resources and common property regimes.