We continue our series with this lesser-known economic model that avoids both growth and degrowth. Agrowth advocates for indifference toward Gross Domestic Product (GDP) growth and prioritises broader social goals like environmental sustainability and social welfare. 

We continue our series exploring alternative economics models. Here, in the first of two parts, we look at Agrowth.

The “ALMOST AGNOSTIC, ATHEISTIC” OPTION 

We were first introduced to agrowth economics during our ‘Boom or Bust? Economy, wellbeing and population’ conference, by Professor Jeroen van den Bergh from the Universitat Autònoma de Barcelona. Unlike traditional growth models, agrowth – an idea developed by van den Bergh – emphasises that growth is neither inherently good nor bad. Its value depends on societal and environmental contexts. Van den Bergh explains that it’s better to be “almost agnostic or atheistic” about growth. 

This “neutral” model suggests that policy decisions should aim for broader goals like environmental health and social equality, without being constrained by the pursuit of GDP increases. Like other models we’re exploring, agrowth prioritises wellbeing, sustainability and environmental preservation. However, its distinguishing feature is its indifference toward “growth”, remaining critical of both green growth and degrowth.  

If people cannot be convinced that policies will not harm growth then such policies will not receive majority support. What we know for sure is that current growth is not sustainable and that for a while, during a transition phase, it will remain unsustainable…One way out of this dilema is to refrain from trying to convince voters and politicians that green growth is possible.”

Professor van den Bergh

To van den Bergh they ‘signal fear that serious climate policies will reduce the rate of economic growth’.

Don’t shrink the economy

Professor van den Bergh expresses scepticism toward ideas such as shrinking the market economy, zero growth, negative GDP growth, reduced consumption, work time reduction, or anti-capitalist perspectives, describing them as “too radical and ultimately ineffective.” 

He argues that capitalism is the only system capable of efficiently serving the global economy and its vast population through markets. 

Returning to barter trades or completely localised economies isn’t feasible, especially as we confront climate change.” 

Professor van den Bergh

For him, degrowth approaches focused on reducing income or consumption are too crude to effectively reduce greenhouse gas emissions. He proposes agrowth as a more subtle and practical alternative. 

In his research, van den Bergh and his team explored public and scientific opinions on green growth, agrowth and degrowth. The team discovered that while green growth was the most popular, agrowth was more popular than degrowth, especially among scientists – something he found “promising.” 

THE “AGROWTH MENTALITY” TRANSITION WORTH A TRY? 

According to Bergh, we should view agrowth as an opportunity to reduce the polarisation between pro- and anti-growth camps. One reason for resistance to economic transition is that politicians often become nervous when GDP growth slows. The fear is their country will lose international status if they show no growth compared to others. Agrowth aims to bridge the divide between pro-growth and anti-growth advocates. It looks to foster a more constructive debate on sustainability and climate policies. 

Under an agrowth strategy, periods of high, low, zero and even negative growth could alternate with one another, as long as environmentally sustainability and progress in terms of welfare were guaranteed.” 

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This is part one of Agrowth: The Agnostic Approach.