Energy, spatial planning and
degrowth:
How are they linked?
Petra Wächter
Institute of Technology
Assessment
Austrian Academy of
Sciences
AUSTRIAN ACADEMY OF SCIENCES
A-1030 Vienna, Strohgasse 45/3
Tel.: +43-1-51581-6592
Fax: +43-1-710 98 83
petra.waechter@oeaw.ac.at
www.oeaw.ac.at/ita
INSTITUTE OF TECHNOLOGY ASSESSMENT
Overview
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Introduction
Energy in Neoclassical Theory
Aiming at energy degrowth
Energy and land use
o
Competition between different renewable energy
resources
o
Competition between energy and food
Role of spatial planning institutions
Conclusions
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Introduction
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Reliance on energy consuming activities in
production and consumption is one of the pillars of
each economic system
Paradigm of economic growth is still main goal for
policy-makers worldwide
Indicator for Growth: Gross Domestic Product (GDP)
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Energy in Neoclassical Theory
Cobb-Douglas production function:
Yt = AtLtß1tKtß2tEtß3t
β1t + β2t + β3t = 1
…implies substitution between input factors
…means scarcity in energy sources does not harm any
production activity as long as exist options for
substitution with other input factors
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What does GDP not measure?
GDP measures flows of goods and services but not the stock!
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Ecological factors:
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damages on ecosystem: environmental harms on air,
water, land, forests and whole fauna and flora
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E.g. depletion of non renewables energy resources
contributes to a rise in GDP and is not seen as a
depreciation of natural capital; compensation for
negative externalities
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Social factors: no reflection on who benefits from
production and consumption; no measurement of equity,
social capital or immaterial goods; no reflection of any kind
of risks, e.g energy security
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Economic factors: no measurement of economic
transactions and activities outside of economic market,
e.g. work in households, black labour market
 GDP does not measure sustainable growth!
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Empirical estimates on the causal
relationship between energy and
economic growth
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Four possible directions:
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No causality at all (neutrality hypothesis)
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Economic growth causes energy consumption
(conservation hypothesis)
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Energy consumption causes economic growth
(growth hypothesis)
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Mutual relationship (feedback hypothesis)
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No empirical evidence for any of these hypotheses!
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Manifold discussion if energy is adequately represented in
neoclassical production functions
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Aiming at a degrowth of energy
consumption
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Energy use is restricted by the two laws of
thermodynamic!
Increased energy-efficiency within a growth paradigm
postpones resource scarcity (restricted by reboundeffect!)
Current energy use is no longer affordable due to
irreversible damages to ecosystem
Non-renewable as well as renewable energy
resources have large impacts on local, regional and
global levels (atmospheric pollution, loss of
biodiversity, destruction of land)
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Energy and land use
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Mutual relationship: Energy use has impacts on land use
AND use of land determines energy consumption
Constraints of use of renewable energy due to limited
available land and to limited biophysical capacities
Land use conflicts:
o Competition between different energy
sources
o Competition between agricultural and
energy use
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Overuse of energy resources
Availability of land is limiting factor for not using renewable
energy resources endlessly!
Impacts:
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Failure to comply with sustainability standards has severe
consequences on fauna and flora, the ecosystem, losses
of biodiversity (e.g. erosion of land by planting
monocultures of trees or crops for energy purposes,
excessive water use)
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Resistance of local population:
e.g. wind mills: noisy, landscape disfiguring
hydro power plants: loss of living space and
cultural heritage for thousands of people,
e.g. China, Turkey (dam of Ilisu)
 Use regional and local conditions regarding
possibilities to produce energy sustainably
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Food and energy – competing
functionalities
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Main pressure: population growth leading to
increased food demand
Renewable energy crops tend to crowd out food
crops  rise in price level for food
Severe consequences for population
Higher investments in agricultural production
because of higher demand of biofuels  increasing
profit possibilities
Therefore, diminishing demand for biofuels would
enhance global food security
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Crucial role of spatial planning
institutions
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Decisions about dedication of land use:
Regions specific energy use: incorporating
sustainability criteria
Settlement structures: decisions about the location
of settlements and industries, and its related
infrastructures, strength of different economic circles
Transport system: enhance sustainable mobility
behaviour with a strong reliance on public transport,
secure mobility without a growing individualised
transport
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Conclusions
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No empirical results of the relationship between GDP and
energy use  energy is not adequately reflected
Current energy demand is not feasible with renewable
energy resources that should meet standards of
sustainability criteria
Limitation of unlimited energy use leads to a pressure of
production and consumption that will unavoidably lead to
lower levels of economic activity
Crucial role of spatial planning institutions: Long term
energy security must take place in line of sustainable land
use
Degrowth of non-renewable but also of renewable energy
resources!!!
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