Economic growth and sustainability
Introduced| English | Meaning |
|---|---|
| sustainable/səˈsteɪnəbl/ | Able to continue over time without exhausting the resources or undermining the conditions on which it depends. |
| inflation/ɪnˈfleɪʃn/ | A sustained increase in the general price level of goods and services. |
| inequality/ɪniːˈkwɒlɪti/ | An unequal distribution of a quantity, opportunity or outcome between people or groups. |
| depletion/dɪˈpliːʃn/ | depletion |
| sustainable development/səˈsteɪnəbl dɪˈveləpmənt/ | Development that meets present needs while preserving future generations' ability to meet their own needs. |
| renewables/rɪˈnjuːəblz/ | renewables |
Growth that lasts
- Growth raises living standards — but burning through forests, fish stocks and clean air to get it stores up trouble.
- Sustainable 可持续的 growth means rising output today without wrecking the prospects of tomorrow.
Economics case lab
Classify real examples by the economic idea they show.
Which is a benefit of economic growth?
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Growth raises incomes, employment and tax revenue for public services.
The benefits of growth
- Higher incomes and living standards, more jobs, better public services (tax revenue rises), and reduced poverty.
Growth is the rising trend; but each boom and bust, and its environmental cost, must be managed.
A potential cost of rapid economic growth is:
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Growth can deplete resources and damage the environment, among other costs.
The costs
- Inflation 通货膨胀 risk if demand outpaces supply, worsening inequality 不平等, resource depletion 枯竭, and environmental damage (pollution, climate change).
Investment in new buildings and capital is a key driver of economic growth
Sustainable development meets present needs without compromising those of future generations.
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That is the standard (Brundtland) definition of sustainable development.
Which policy supports sustainable growth?
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Pricing the externality (carbon tax) steers the economy toward sustainability.
Sustainable growth aims to protect the prospects of ______ generations.
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Growth today should not compromise tomorrow.
Sustainability
- Sustainable development 可持续发展: meeting present needs without compromising future generations' ability to meet theirs.
- Policies: pricing externalities (carbon taxes), investing in renewables 可再生能源, and protecting natural capital.
GDP growth ≠ rising wellbeing. Fast growth can deplete the environment and widen inequality, so the gain in measured GDP overstates the gain in actual welfare.
You've got it
- growth brings higher incomes, jobs, public services — but risks inflation, inequality, environmental damage
- sustainable development meets today's needs without harming future generations
- policies: price externalities, invest in renewables, protect natural capital
Write from an adjusted growth rate of 4
- Measured GDP growth is 6 percent.
- A green adjustment for resource depletion subtracts 2 percentage points.
What growth rate is left after the adjustment?
Sustainable growth deducts the resource cost from measured growth.
What is the adjusted growth rate?
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6 minus a depletion cost of 2 is 4.