Question

Is environmental sustainability compatible with long-run economic growth?

In order to structure your discussion, you may choose to touch on one or more of the following issues:

(a) What is the historical relationship between economic growth and environmental quality? (Hint: The Jones textbook has a short discussion about this, but you may find it too short.)
(b) Is there a way for the economy to grow without using more resources?

I want to know the answers for this questions..

Answer 1

The credo of all governments and global organizations, including the European Commission, continues' Growth for the sake of growth.' Economic growth is portrayed as the panacea that can fix any of the issues of the world: poverty, inequality, sustainability, you call it. The strategies of the left and the right vary only as to how to accomplish it.

Ecological economists claim that the economy is physical, while mainstream economists appear to think that it is metaphysical.

Social metabolism is the study of the economic flows of material and energy. Key material resources are restricted on the input side of the economy, and many peak, including oil and phosphorus. Humanity is crossing planetary boundaries on the output side. There is, however, an unpleasant science reality to face: financial development is unsustainable from an environmental point of view. Moreover, it is not socially necessary to exceed a certain threshold already exceeded by EU countries

There can be no circularity in the present economy. The primary reason is that there is no recycling of energy and only up to a point of equipment. Less than 10 percent of products are recycled by the worldwide economy; about 50 percent of processed products are used for power supply and are therefore not accessible for recycling. It is easy: financial development is incompatible with sustainability of the environment.

a Environmental economic growth and physical circumstances interact. While financial activity may be the cause of environmental issues, a decline in physical circumstances may hamper financial procedures as well. Due to many connections and feedback from the environment-economy, environmental change and economic growth communicate. First, the environment is a waste sink and, second, an economy resource. Third, society may have a preference for a clean environment, because environmental quality has an amenity value or an existence value Fourth, a clean atmosphere increases the productivity of the variables of manufacturing in order to have a productive value. Lastly, part of financial activity may be dedicated directly to cleaning up spoiled components of the environment, i.e., abatement and recycling may occur.

b Sustainable economic growth implies a rate of growth that can be sustained, particularly for future generations, without generating other important financial issues. Clearly there is a trade-off between today's fast economic growth and future development. Today's rapid development can exhaust resources and generate environmental issues for future generations, including petroleum and fish depletion, and worldwide warming.

Growth periods are often caused by higher aggregate demand, such as higher consumer expenditure, but continuous growth must require higher production. If production does not raise, the price level will be pushed by any additional demand.

Approximately, there are two ways to boost GDP. The first is to keep producing the same things for each worker, but to increase the number of workers (i.e. growth of the population). But the second is to maintain the same population and boost the quantity each employee produces. This productivity rise could occur as employees become intrinsically more productive (i.e. through schooling) employees have better instruments to work with (e.g. through technological advancement).