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The sustainability paradigm: A macroeconomic perspective

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  • Bretschger, Lucas

Abstract

This paper presents a macroeconomic approach to sustainable growth. After clarifying the concept of sustainability, the interdependence between natural resources and accumulated capital stocks such as physical, human, and knowledge capital is discussed. The conditions for the substitution process leading to sustainable development are demonstrated in a one-sector approach and two versions of a multi-sector endogenous growth model. It turns out that prices of natural inputs have their major impact on growth by changing an economy's sectoral structure. The prediction of a successful substitution of knowledge for natural resources emerges to be realistic, provided that the sectoral adjustment cost in the economy are not too high.

Suggested Citation

  • Bretschger, Lucas, 1997. "The sustainability paradigm: A macroeconomic perspective," Discussion Papers, Series II 331, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    • Handle: RePEc:zbw:kondp2:331
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    Keywords

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    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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