Growth and Protection

The issue of economic growth and the environment essentially concerns the kinds of pressures that economic growth, at the national and international level, places on the environment over time.

“We learned that economic growth and environmental protection can and should go hand in hand.” — Christopher Dodd

“The greatest threat to our planet is the belief that someone else will save it.” — Robert Swan

“Economic growth and environmental protection are not at odds. They’re opposite sides of the same coin if you’re looking at longer-term prosperity.” — Henry Paulson

“The secret to economic growth lay in the fact that that each generation attacked Nature not only with its own energies and resources, but with the heritage of equipment accumulated by its forebears.” — Robert Heilbroner

“Far from being a drag on growth, making our energy sources more sustainable, our energy consumption more efficient, and our economy more resilient to energy price shocks — those things are a vital part of the growth and wealth that we need.” — David Cameron

Increased incomes, for example, provide the resources for public services such as sanitation and rural electricity.

With these services widely available, individuals need to worry less about day-to-day survival and can devote more resources to conservation.

Second, environmental quality can initially worsen but then improve as the growth rate rises.

In the cases of air pollution , water pollution , and deforestation and encroachment there is little incentive for any individual to invest in maintaining the quality of the environment.

The terms growth and protection can be understood in various contexts:

Economic Growth: Refers to the increase in total output from new resources or better use of existing resources, often measured by increased real incomes percapita. It involves transforming the natural world and can impact environmental quality in different ways.

Investment Protection: In the context of investments, protection refers to strategies that safeguard capital against market downturns. This includes using tools like hedging, diversification, and disciplined exit plans to manage downside risk while still allowing for potential upside growth.

Balancing Growth and Protection: In wealth management, balancing growth and protection involves using a mix of growth assets (like stocks) and protection assets (like bonds) to achieve a stable investment portfolio. This approach helps mitigate risks while still allowing for potential returns.

These concepts highlight the importance of both growth and protection in various fields, ensuring sustainable development and financial stability.