Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

(Rick Simeone) #1

2.2 Resource Management and Sustainable Development 13


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2.2.2 Sustainability as Limit to Growth?


When Meadows et al. (1972) published their report, “The Limits to growth”, for the


Club of Rome, the broader public was confronted with the thought that only limited


growth is possible on a finite planet with finite resources. Although the publication


is not the first one to address this topic it was probably the most successful at gaining


significant public attention. As the title of the book suggests, the authors depict a


scenario for the future in which the death rate decreases, birth rates increase and the


demand for food and other products grow to a point of collapse where resources are


depleted and a lack of food and health issues eradicate a large part of human kind.


The model of Meadows and colleagues examines the interaction of the following


five subsystems: population, pollution, non-renewable resources, food and industrial


output. In their scenario, even under the assumption that society learns to more


efficiently conserve nonrenewable resources, the collapse will come due to pollution.


The growing world population and the consequently increased demand for food and


other goods will lead to problems in food production erasing three-quarters of the


world’s population (Meadows et al. 1972). The authors come to the conclusion that


the only possible way to avoid this collapse is to introduce policies to force people


to have fewer children and to limit general consumption. Consequently, this might


lead to a significant loss in well-fare and a materialistically poorer society. With


regards to their calculations, Meadows and his coauthors examined 19 resources


of which twelve were going to run short within the next 40 years. They assumed


an on-going exponential growth in demand and even included in their analysis an


assumption that reserves will be five times as high as known to date. However, their


result indicated that short running on these resources can only be extended by a few


decades. The knowledge one has today shows that assumptions in the report have


been incorrect. Reserves of critical resources (as defined by Meadows et al. 1972)


are still available today, some even at a higher amount than what was available 40


years ago. This can be explained by taking petroleum as an example. In the report


of 1972 the known reserves of petroleum were 500 billion barrel. 40 years later the


used amount of petroleum is 760 billion and the estimated reserves are at 1.2 trillion


barrel. The paradox of how increased demand can lead to increased reserves can be


explained easily. Increased demand leads to higher prices which makes depletion,


even in areas which are difficult to access, economically beneficial. Furthermore,


new extraction technologies, effective exploitation of oilfields and the discovery of


new fields can explain the above paradox (Fücks 2013).


The book from Meadows et al. received a high amount of attention which helped

in initiating a discussion on the environmental concerns. This debate deals with


the depletion of resources and how demand for food and other products can be

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