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Grimaud, André
, Lafforgue, Gilles
and Rouge, Luc
(2026)
Does the climate challenge justify degrowth?
Economics Letters, vol. 267 (n° 113070).
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Abstract
Degrowth is often advocated as a response to the climate crisis, but its consistency with growth theory remains unclear. We develop an endogenous growth model of directed technical change and climate in which the economy relies on both a polluting fossil resource and a clean renewable alternative. We fully characterize the social optimum and show that accounting for climate damages may justify an initial phase of degrowth. Such a phase is more likely when fossil resources are abundant and fossil-oriented research is relatively inefficient. In all cases, long-run optimal growth remains positive.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | August 2026 |
| Refereed: | Yes |
| JEL Classification: | O33 - Technological Change - Choices and Consequences; Diffusion Processes Q32 - Exhaustible Resources and Economic Development Q54 - Climate; Natural Disasters Q55 - Technological Innovation |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 18 Jun 2026 07:05 |
| Last Modified: | 18 Jun 2026 07:05 |
| OAI Identifier: | oai:tse-fr.eu:131846 |
| URI: | https://publications.ut-capitole.fr/id/eprint/53742 |
Available Versions of this Item
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Does the climate challenge justify degrowth ? (deposited 29 May 2026 09:23)
- Does the climate challenge justify degrowth? (deposited 18 Jun 2026 07:05) [Currently Displayed]
