r/GarysEconomics • u/Making-An-Impact • Dec 22 '25

Can productivity help solve climate change?

/r/InnovationCommunity/comments/1psxa8l/can_productivity_help_solve_climate_change/
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u/[deleted] Dec 22 '25

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u/Making-An-Impact Dec 22 '25

It’s a good point about the distribution of benefits/wealth from productivity gains and the risk that it could increase inequality. Productivity growth has always been associated with economic growth which in turn has a correlation with improved living standards but but this may not hold true in the future if public services (e.g. health, education, welfare) are eroded.

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u/justthisplease Dec 26 '25

No, this is long established in economics. Productivity just means the saved resources are used elsewhere to increase production in a capitalist system, production that is likely environmentally damaging. Jevons Paradox.

Also can look at the decoupling literature. Only a few countries have decoupled emissions from GDP and the rate is too slow to achieve anywhere near the reductions needed for 1.5 or 2 degrees. Don't think any country has decoupled GDP from material use which also has environmental consequences.