Advertisement

Cluster Computing

, Volume 20, Issue 4, pp 2981–2991 | Cite as

Optimal path for sustainable development under the dual constraints based on endogenous growth algorithm

  • Shijian WuEmail author
  • Ruixiong Zhang
Article
  • 286 Downloads

Abstract

Constructing an economic growth model comprising dual resource and environmental constraints by introducing both environmental quality and non-renewable resources as endogenous factors also introducing the production and utility functions. This was used to systematically analyze the endogenous mechanism through factors such as non-renewable resource consumption, environmental pollution externalities, the accumulation of physical capital, human capital development, and endogenous technological advancement could influence long-term economic growth. The basic conclusion of the model suggests that under both resource and environmental constraints, it is investment in both human capital and research & innovation that is the main driving and determining factor for long-term sustainable economic growth. The optimal development strategy of economic sustainability can be achieved through supporting human capital accumulation and technological innovation activities, promoting the advancement of clean production technologies, and formulating stringent environmental standards, as well as strengthening the society’s awareness of the environment and sustainable development.

Keywords

Dual constraints Environmental quality Endogenous growth Sustainable development 

Notes

Acknowledgements

The authors would like to thank the referees and the editor for their valuable comments and suggestions. This work was supported in part by National Natural Science Foundation of China (Grant No. 71371111), Young and Middle-Aged Scientists Research Awards Fund of Shandong Province (Grant No. BS2013SF019), Postdoctoral Science Foundation of China (Grant No. 2014M551937), Key Project of National Statistical Science Research of China (Grant No. 2010LB27; 2010LB21), Research and Innovation Teams of Shandong University of Science and Technology (2015TDJH103).

References

  1. 1.
    Stiglitz, J.: Growth with exhaustible natural resources: efficient and optimal growth paths. Rev. Econ. Stud. 41(5), 123 (1974)CrossRefzbMATHGoogle Scholar
  2. 2.
    Romer, P.M.: Increasing returns and long-run growth. J. Political Econ. 94(5), 1002–1037 (1986)CrossRefGoogle Scholar
  3. 3.
    Romer, P.M.: Endogenous technological change. J. Political Econ. 98, 71–102 (1990)CrossRefGoogle Scholar
  4. 4.
    Lucas, R.E.: On the mechanics of economic development. J. Monetary Econ. 22(1), 3–42 (1988)CrossRefGoogle Scholar
  5. 5.
    Bovenberg, A.L., Smulders, S.: Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model. J. Publ. Econ. 57(3), 369–391 (1993)CrossRefGoogle Scholar
  6. 6.
    Scholz, C.M., Ziemes, G.: Exhaustible resources, monopolistic competition, and endogenous growth. Environ. Resour. Econ. 13(2), 169–185 (1999)CrossRefGoogle Scholar
  7. 7.
    Ligthart, J.E., Ploeg, F.V.D.: Pollution, the cost of public funds and endogenous growth. Econ. Lett. 46(4), 339–349 (1994)CrossRefzbMATHGoogle Scholar
  8. 8.
    Stokey, N.L.: Are there limits to growth? Int. Econ. Rev. 39(1), 1–31 (1998)CrossRefMathSciNetGoogle Scholar
  9. 9.
    Barro, R.J., Sala-I-Martin, X.: Convergence across U.S. states and regions. Brook. Pap. Econ. Activity 22(1), 107–182 (1991)CrossRefGoogle Scholar
  10. 10.
    Scholz, C.M.: Environmental regulation and its impact on welfare and international competitiveness in a heckscher-ohlin framework. Kiel Working Papers (1998)Google Scholar
  11. 11.
    Barbier, E.B., Homer-Dixon, T.F.: Resource scarcity and innovation: can poor countries attain endogenous growth? Ambio 28(2), 144–147 (1999)Google Scholar
  12. 12.
    Howitt, P., Aghion, P.: Capital accumulation and innovation as complementary factors in long-run growth. J. Econ. Growth 3(2), 111–130 (1998)CrossRefzbMATHGoogle Scholar
  13. 13.
    Grimaud, A., Rougé, L.: Non-renewable resources and growth with vertical innovations: optimum, equilibrium and economic policies. J. Environ. Econ. Manag. 45(2), 433–453 (2003)CrossRefzbMATHGoogle Scholar
  14. 14.
    Bretschger, L.: Economics of technological change and the natural environment: how effective are innovations as a remedy for resource scarcity? Ecol. Econ. 54(2–3), 148–163 (2005)CrossRefGoogle Scholar
  15. 15.
    Tsur, Y., Zemel, A.: Scarcity, growth and r&d. J. Environ. Econ. Manag. 49(3), 484–499 (2005)CrossRefzbMATHGoogle Scholar
  16. 16.
    Bovenberg, A.L., Smulders, S.A.: Transitional impacts of environmental policy in an endogenous growth model. Int. Econ. Rev. 37(4), 861–893 (1996)CrossRefzbMATHGoogle Scholar
  17. 17.
    Maltsoglou, D.: Simulating exogenous and endogenous technology when depletables, renewables and pollution coexist:how to achieve sustainability. J. Environ. Econ. Manag. 58(6), 80–98 (2008)Google Scholar
  18. 18.
    Prettner, K., Werner, K.: Why it pays off to pay us well: the impact of basic research on economic growth and welfare. Res. Policy 45(5), 1075–1090 (2016)CrossRefGoogle Scholar
  19. 19.
    Becker, G.S., Barro, R.J.: A reformulation of the economic theory of fertility. Q. J. Econ. 103(1), 1–25 (1988)CrossRefGoogle Scholar
  20. 20.
    Lyon, K.S., Lee, D.M.: Nonrenewable resource extractions with a pollution side effect: a comparative dynamic analysis. Nat. Resour. Model. 17(4), 377–392 (2004)CrossRefzbMATHMathSciNetGoogle Scholar
  21. 21.
    Bastianoni, S., Pulselli, R.M., Pulselli, F.M.: Models of withdrawing renewable and non-renewable resources based on odum’s energy systems theory and daly’s quasi-sustainability principle. Ecol. Model. 220(16), 1926–1930 (2009)CrossRefGoogle Scholar
  22. 22.
    Nguyen, M.H., & Nguyenvan, P.: Growth and convergence in a model with renewable and non-renewable resources: existence, transitional dynamics, and empirical evidence. Working Papers (2010)Google Scholar
  23. 23.
    Acemoglu, D., Aghion, P., Bursztyn, L., Hemous, D.: The environment and directed technical change. Oxf. Rev. Econ. Policy 102(1), 131–166 (2012)Google Scholar
  24. 24.
    Silva, S., Soares, I., Afonso, O.: Economic and environmental effects under resource scarcity and substitution between renewable and non-renewable resources. Energy Policy 54(3), 113–124 (2013)CrossRefGoogle Scholar
  25. 25.
    Kalkuhl, M., Edenhofer, O., Kai, L.: Renewable energy subsidies: second-best policy or fatal aberration for mitigation? Resour. Energy Econ. 35(3), 217–234 (2013)CrossRefGoogle Scholar
  26. 26.
    Peng, S.J.: Natural resource depletion and sustainable economic growth based on a four-sector endogenous growth model. J. Ind. Eng. Eng. Manag. 21(4), 417–421 (2007)Google Scholar
  27. 27.
    Cairns, R.D.: The green paradox of the economics of exhaustible resources. Energy Policy 65(65), 78–85 (2014)CrossRefGoogle Scholar
  28. 28.
    Berk, I., Yetkiner, H.: Energy prices and economic growth in the long run: theory and evidence. Renew. Sustain. Energy Rev. 36, 228–235 (2014)CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2017

Authors and Affiliations

  1. 1.College of Economics and ManagementShandong University of Science and TechnologyQingdaoChina
  2. 2.School of LawBeijing Foreign Studies UniversityBeijingChina

Personalised recommendations