The limits to growth. Alfred Marshall and the British Economic Tradition

Concerns related to the capability of economic development and growth to be sustainable in the long run have cyclically surfaced the public debate, at least since the demographic pressure upon resources started to clash with some physical exploitation limits. Nonetheless, along the history of economic thought, most economists have inquired into the question of the limits to growth mainly providing models showing unlimited opportunities thanks to price signals that create incentives for technological progress and input substitution. An important exception is given by some British economists who, during the Nineteenth Century, considered the possible detrimental consequences of economic growth. The questions of population growth, absolute scarcity of natural resources, externalities on the urban and natural environment imposed by a rapid industrial revolution, the worsening of the quality of life and of human capital were all variously debated. But it was with Alfred Marshall that the debate among economists was enriched by reflections that should be considered as a pioneering contribution to many aspects of the modern concepts of limits to growth and sustainable development. Our paper aims at inquiring into the cultural heritage and scientific background which preceded and accompanied his works and underlining continuities and innovations along the Nineteenth Century economic thought.