Yes, higher the negative externalities because of economic growth lead to a higher social loss. Economic growth in place of social or environment loss is always considered bad for long term economy, and human and resource development. The economy is the part of the society and environment, and negative externality implies that economic growth has a negative effect on both. A short term growth can be achieved with short-sighted economic policies but in the long term, negative externalities arisen due to bad economic policies will impact economic growth too.

Social and environmental development plays a crucial role in overall economic development. Therefore, economic growth which lacks social and environmental development is of no use.

Economic growth with excess negative externalities never leads to sustainable growth. Therefore, negative externalities as a result of economic growth always provide an argument for limiting economic growth.