Any sustainable decoupling in the Finnish economy? A comparison of the pathways and sensitivities of GDP and ecological footprint 2002-2005

Ecological footprint was combined with economic input-output analysis in order to identify the economic structures causing the overuse of biological resources. These structures were analyzed with the use of structural decomposition, path analysis and sensitivity analysis and compared to the structures which drive economic growth. The scope of the analysis was the Finnish national economy during 2002-2005. Based on the results increases in gross domestic product (GDP) and ecological footprint were found to be different subsystems of the economy. This aspect was previously hidden by country level aggregate indicators. Ecological footprint was increased by the production and consumption of primary commodities, such as wood, paper, fish, crops, animal products and energy as well as construction. In contrast, GDP growth was caused mainly by increased demand in service sectors such as renting and owning apartments, trade and business services as well as governmental services, health, education and social work. The two systems overlapped only in dairy products and forest products, which had major influences to both indicators. Ecoefficiency improved overall in the economy between 2002 and 2005 especially in some industries, such as sawmilling and electricity production. However growth in consumption resulted in increased environmental impacts nevertheless.