Is Norway on the pathway to green growth? Evidence on decoupling between GDP and environmental footprints

Abstract

Proponents of green growth argue that technological advancements and price signals can decouple economic growth from environmental impact through resource substitution and enhanced efficiency. In this research, we investigate the extent to which economic growth in Norway is decoupling from three key indicators of environmental pressure: energy use, greenhouse gas (GHG) emissions, and material consumption. Our findings show efficiency improvements across all of these indicators, but no absolute decoupling for any of them, and less so, a sufficient absolute decoupling to meet global sustainability targets. Despite the prevalent discourse surrounding a purported ‘green shift’, the overall environmental pressure within Norway is still on an upward trajectory. Mounting evidence regarding the absence of sufficient absolute decoupling suggests that the time may be ripe for high-income nations like Norway to transcend policy focus on green growth and engage in transitions towards a post-growth economy.