Environmental decoupling

Indian Economy glossary

Also called: Green decoupling · Topic: Environment and Sustainable Development · NCERT: Beyond NCERT

Meaning

Environmental decoupling means breaking the link between GDP growth and pressure on the environment. There are two types:

  • Relative decoupling: emissions still rise, but more slowly than GDP.
  • Absolute decoupling: emissions fall while GDP rises.

Only absolute decoupling actually reduces total harm.

Example

India's emissions intensity (emissions per unit of GDP) fell about 36% between 2005 and 2020. India's first Biennial Transparency Report (BTR), filed in 2024, reported this figure. It shows relative decoupling: each rupee of GDP produced less emissions. Total emissions still grew, so this is not absolute decoupling.

Don't confuse with

  • Rebound effect: efficiency makes using something cheaper, so people use more of it. That extra use can eat up part or all of the savings from decoupling.
  • Environmental Kuznets curve: this is an inverted-U idea. It says damage first rises with income and then falls. Decoupling measures what is actually happening, with no set shape.

Related concepts

Read more