Is Current Consumption Excessive? A General Framework and Some Indications for the United States

Abstract:  Many prior studies have explored the implications of human population growth and environmentally problematic technologies for biodiversity loss and other forms of environmental degradation. Relatively few, however, have examined the impacts of the level and composition of consumption. We offer a framework that shows how the level and composition of a society's total consumption relate to the uses of various forms of capital and to the sustainability of natural resources and human well-being. We relate the framework to two main approaches—top–down macro studies and bottom–up computer models—for measuring whether overall consumption in the United States satisfies a sustainability requirement. Existing top–down studies have shortcomings that bias their results toward optimism, and current computer simulation models, although strong on revealing biophysical outcomes, are limited in their ability to evaluate impacts on human well-being. Although some ambiguities arise in determining whether overall consumption in the United States is excessive, our conclusions regarding the composition of U.S. consumption are unambiguous. Distorted consumption patterns and associated production methods lead to excessively rapid natural resource depletion; greater conservation would yield gains to current and future generations that more than compensate for the sacrifices involved. Public policies that deal with the composition problem not only would help conserve natural resources and improve current welfare but also would reduce the costs of meeting the goal of sustainability.