Conference Agenda

This article explores the intricate relationship between economic growth and environmental sustainability. It contrasts two perspectives: 'green growth,' which espouses the notion of compatibility between the two, and 'degrowth,' which posits the potential for discord.The objective is to furnish empirical evidence that advances the discourse on the manner in which economic growth can be rendered more sustainable.The article addresses two significant global challenges: stagnating productivity, wages, and job creation, along with the escalating unsustainability of the global economy, particularly with regard to climate change. The article advocates for a shift in economic measurements beyond traditional GDP, incorporating human, natural, and man-made capital through the concept of inclusive wealth.To measure true economic progress, the article introduces Total Sustainable Productivity (TSP), an extension of traditional Total Factor Productivity (TFP) that includes environmental and social factors. The analysis employs stochastic frontier analysis (SFA) to assess European economies from 1960 to 2022, with a focus on institutional quality, innovation, financial openness, and environmental policies as key drivers of TSP growth.The findings indicate that social and natural capital play a critical role in national productivity, and that TSP provides a more stable measure of growth compared to TFP, particularly in the post-2000 period. The study identifies key factors for enhancing sustainable growth, such as improving governance, fostering innovation, promoting financial openness, and implementing strong environmental policies.