Modeling green growth and resource efficiency: new results

Green growth is an environmental policy strategy that aims at an absolute decoupling between economic growth and resource consumption. As far as the applied policy measures focus on direct enhancements of economy-wide resource efficiency levels, their overall achievements might however be weakened by their induced rebound effects. This paper seeks to investigate the nature and significance of such trade-off interrelationships with regards to material efficiency improvements within the German economy. To this, we present the outcomes of individual policy simulations by means of the PANTA RHEI model. Taxes, information, and regulation activities are considered as policy instruments. Our overall empirical findings cannot falsify the green growth paradigm as the observed magnitude of economy-wide rebound effects appears unable to inhibit future absolute decoupling trends. Copyright Springer-Verlag 2012