ISBN : 2738465021
THE SUSTAINABILITY PARADIGM: A MACROECONOMIC PERSPECTIVE
Abstract - This paper presents a macroeconomic approach to sustainable growth. After clarifying the concept oj sustainability, the interdependence between natural resources and accumulated capital stocks such as physical, human, and knowledge capital is discussed. The conditions Jor the substitution process leading to sustainable development are demonstrated in a one-sector approach and two versions oj a multi-sector endogenous growth model. /t turns out that prices oj natural inputs have their major impact on growth by changing an economy's sectoral structure. The prediction oj a successful substitution oj knowledge Jor natural resources emerges to be realistic, provided that the sectoral adjustment cost in the economy are not too high....