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economic_growth_more

What can I choose in the calculator?

The calculator lets you choose the yearly Economic growth (in %) in Switzerland. The percentage is kept constant throughout the selected time period (out to 2035 or 2050).

Economic growth

image

Contents

  • Impact
  • Global context
  • Definition
  • Drivers
  • Value ranges
  • References

IMPACT – What are the impacts of Economic growth?

In Switzerland, increasing Economic growth will have the following impacts:

Energy system

image Increase final energy demand.

image Increase total electricity consumption.

image Likely to reduce the share of renewable energy sources in the energy mix.

image Likely to raise pressure on the grid by increasing (peak) electricity demand.

image Likely to reduce energy independence and energy security.

Environment & Climate

image Very likely to increase global CO2 emissions.

image Increase emissions of harmful pollutants, especially in urban areas.

image Increase noise pollution.

image Increase overall deposited waste.

Society & Economy

image Likely to increase the cost of the energy transition in absolute sense but likely to have limited impact on the cost of the energy transition in relative sense.

image Increase Confederation income from the tax on mineral oil under the current taxation system.

GLOBAL CONTEXT – Swiss Economic growth in a global context

Switzerland’s economy grew from 244 billion USD to 632 billion USD between 1990 and 2013 (an average growth rate of 4.22% per year).[1]

According to the World Bank, the global economy grew from 22,246 billion USD in 1990 to 72,490 billion USD in 2012 (an average growth rate of 5.52% per year).[2]

Between 2008 and 2010 both the Swiss and the Global economic growth rates stagnated with an average economic growth of 0.42% and 1.7% per year respectively.[2]

DEFINITION / DRIVERS

DEFINITION - What is Economic growth?

Economic growth is the rate with which the economy (of a country or region), expressed by its Gross Domestic Product (GDP), grows from one year to the next,. GDP is the monetary value of all the manufactured goods and services produced within a country's borders. For example, a country having a GDP of €100 billion in a given year willreach , with a growth rate of 2%/yr, a GDP of €102 billion in the next year.

DRIVERS - What are the key drivers of Economic growth?

• Productivity of capital and labour

• Growth of labour force

• Private sector investment

• Public sector spending

VALUE RANGE - WHAT RANGE OF VALUES CAN I CHOOSE?

The economic growth is represented by the GDP increase rate per year. In 2011 the Swiss GDP was 581.1 billion CHF (2011 prices). PROGNOS 2012 [3] estimates that the GDP in 2050 will be 795.1 billion CHF (2011 prices), which represents a GDP increase rate per year of 0.8%, assuming a constant GDP growth rate over the years.

In order to set the value range for the GDP increase, it has been assumed that the GDP in 2050 could vary +/- 20% respect to PROGNOS forecast (795.1 billion CHF). Therefore the obtained range is 0.23 – 1.28 %.

REFERENCES

[1] World Bank Group

[2] World Bank

[3] Die Energieperspektiven für die Schweiz bis 2050

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economic_growth_more.txt · Last modified: 2019/10/22 09:17 (external edit)