Inclusive Green Growth and Sustainable Development through Productive Consumption

Dinda, Soumyananda (2013): Inclusive Green Growth and Sustainable Development through Productive Consumption.

Abstract

This paper analyses development mechanism through which natural resource capital regenerates and contributes to economic growth. Climate change challenges economic development in the 21st century but it also provides opportunity to grow with developing green. New development strategy is the inclusive green growth that leads towards sustainable development. Regeneration of natural resource is a crucial productive capital in the economy. This paper suggests a theoretical model and explains sustainable development mechanism through productive consumption. Empirical observations also support this model. This paper suggests policy inputs regarding regeneration of natural resource capital and its preservation in term of water shed development, flood control or development of ecosystem services through creation of jobs in the channel of productive consumption. Policy makers should focus on employability, regeneration and preservation of natural resource capital for sustaining livelihoods in the economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Green Growth, Climate Change, Social Capital, Productive Consumption, Reciprocity, Flood Control, Watershed Development, Natural Resource Capital, Human Capital, Inclusive Growth, Sustainable Development.
• Subjects: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J62 - Job, Occupational, and Intergenerational Mobility; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z18 - Public Policy

References

Alesina, A. and Ferrara, E. La., 2002. Who trusts others? Journal of Public Economics, vol.-85, 207-234.

Arrow, Kenneth, Partha Dasgupta, Lawrence Goulder, Gretchen Daily, Paul Ehrlich, Geoffrey Heal, Simon Levin, Karl-Goran Maler, Stephen Schneider, David Starrett and Brian Walker (2004). Are We Consuming too Much? Journal of Economic Perspectives—Volume 18, Number 3—Summer 2004—Pages 147–172.

Beckerman, W., 1992. Economic growth and the environment: whose growth? Whose environment? World Development 20(4), 481–496.

Bengtsson, M., Berggren, N. and Jordahl, H., 2005. Trust and Growth in the 1990s: A Robustness Analysis, Department of Economics. Uppsala University, Sweden, Working paper No. 2005:1.

Berggren, N. and Jordahl, H., 2006. Free to Trust: Economic Freedom and Social Capital. Kyklos, vol.-59(2), 141-169.

Bertrand M.; Luttmer E. F. P.; Mullainathan S., 2000. Network Effects and Welfare Cultures. Quarterly Journal of Economics, vol.-115(3), 1019-1055.

Bourdieu, P., 1980. The production of belief: contribution to an economy of symbolic goods. Media, Culture and Society, vol-2(3), 261-293.

Bourdieu, P., 1986. The forms of capital, In John G. Richardson (ed.) Handbook of Theory and Research for the Sociology of Education. Westport, CT, Greenwood Press, 242 – 258.

Boyce, J.K., 1994. Inequality as a cause of environmental degradation. Ecological Economics 11 (3), 169–178.

Cleveland, Cutler J. 2003. Biophysical constraints to economic growth. In D. Al Gobaisi, Editor-in-Chief. Encyclopedia of Life Support Systems, EOLSS Publishers Co.,Oxford, UK.

Cole, M.A., Rayner, A. J., Bates, J. M., 1997. The Environmental Kuznets Curve: an empirical analysis. Environment and Development Economics 2, 401 – 416.

Cole, M.A., 2004. Trade, the pollution haven hypothesis and environmental Kuznets curve: examining the linkages. Ecological Economics 48 (1), 71–81.

Coleman, J.S., 1988. Social capital in the creation of human capital. American Journal of Sociology, vol-94, 95-121.

Coleman, J.S., 1990. Foundations of Social Theory. Cambridge, MA, Harvard University Press.

Coondoo, D. and Dinda, S., 2002. Causality between income and emission: a country group-specific econometric analysis. Ecological Economics 40 (3), 351– 367.

Dasgupta, Partha, Simon Levin and Jane Lubchenco (2000). Economic Pathways to Ecological Sustainability: Challenges for the New Millennium. BioScience, 2000, 50(4), pp.339 - 345.

Dasgupta, P. and Heal, G., 1974. Optimal Depletion of Exhaustible Resources. The Review of Economic Studies 41, 3 - 28.

Dasgupta, P. and Heal, G., 1979. Economic Theory and Exhaustible Resources. Cambridge University Press. Cambridge, UK.

Dasgupta, D. and Marjit, S., 2002. Consumption, quality of Life and Growth, Economic Research Unit, Indian Statistical Institute, Kolkata, Working Paper-ERU/2002-12.

de Bruyn, S. M., 1997. Explaining the Environmental Kuznets Curve: Structural change and international agreements in reducing sulphur emissions. Environment and development Economics 2, 485 – 503.

Dinda, S., 2011. Climate Change and Development: Trade opportunities for Climate Smart Goods and Technologies in Asia. MPRA working paper 34883.

Dinda, S., 2008. Social Capital in the creation of human capital and economic growth: A productive consumption approach. Journal of Socio- Economics, v37, 2020 - 2033.

Dinda, S., 2005. A theoretical basis for Environmental Kuznets Curve. Ecological Economics 53 (4), 403 - 413.

Dinda, S., 2004. Environmental Kuznets Curve hypothesis: A Survey. Ecological Economics 49 (4), 431- 455.

Dinda, S., Coondoo, D., Pal, M., 2000. Air quality and economic growth: an empirical study. Ecological Economics 34 (3), 409 – 423.

Dowla, Asif, 2006. In Credit we trust: Building Social capital by Grammeen Bank in Bangladesh. The Journal of Socio-Economics, vol.-35, 102 – 122.

Glaeser E. L.; Laibson D. I.; Scheinkman J. A.; Soutter C. L., 2000. Measuring Trust. Quarterly Journal of Economics, vol.-115(3), 811- 846.

Grossman, G.M., Krueger, A.B., 1995. Economic growth and the environment. Quarterly Journal of Economics 110 (2), 353 – 377.

Heal, Geoffrey, (2011). Sustainability and its Measurement. NBER working Paper 17008.

Knack, Stephen, and Keefer, Philip, 1997. Does Social Capital Have an Economic Payoff? A Cross-Country Investigation. Quarterly Journal of Economics, vol.-112(4), 1251 - 1288.

Lin, N., 2001. Social Capital. Cambridge, Cambridge University Press.

Magnani, E., 2000. The environmental Kuznets Curve, environmental policy and income distribution. Ecological Economics 32 (3), 431– 443.

Nordhaus, W. D., 1974. Resources as a Constraint on Growth. American Economic Review 64, 22 - 26.

Putnam, Robert. 2000. Bowling Alone: The Collapse and Revival of American Community. Simon and Schuster, New York.

Putnam, Robert. 1995. Bowling Alone: America’s Declining Social Capital. Journal of Democracy, Vol-6, 65 - 78.

Putnam, Robert., Leonardi, Robert and Nametti, Raffaella. 1993. Making Democracy Work. Princeton, Princeton University Press.

Ravallion, Martin, Heil, M., Jalan, J., 2000. Carbon emissions and income inequality. Oxford Economic Papers 52 (4), 651 – 669.

Rupasingha, A., Goetz, S. J. and Freshwater, D., 2006. The Production of social capital in U.S. countries, The Journal of Socio-Economics, vol.-35, 83 – 101.

Sabatini, F., 2006. Does Social capital Improve Labour productivity in small and medium enterprises? University of Rome, Working paper no.92 (2006).

Sengupta, R.P., 1997. CO2 emission–income relationship: policy approach for climate control. Pacific Asia Journal of Energy 7(2), 207–229.

Sobel, Joel. 2002. Can We Trust Social Capital? Journal of Economic Literature, Vol.-XL, 139 - 154.

Solow, R. M., 1974. The Economics of Resources or the Resources of Economics. American Economic Review 64, 1 - 14.

Solow, R. M., 1956. A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics 70(1), 65 - 94.

Steger, T. M., 2000. Economic growth with subsistence consumption. Journal of Development Economics, vol.-62, 343 - 361.

Steger, T. M. 2002. Productive consumption, the intertemporal consumption trade-off and growth. Journal of Economic Dynamics & Control, vol.-26, 1053 - 1068.

Temple J.; Johnson P. A. 1998. Social Capability and Economic Growth. Quarterly Journal of Economics, vol.-113(3), 965 - 990.

Torras, M., Boyce, J.K. 1998. Income, inequality, and pollution: a reassessment of the environmental Kuznets curve. Ecological Economics 25 (2), 147–160.

World Bank, 2012. Inclusive Green Growth the pathways to Sustainable Development. Oxford University Press, Washington D.C.

World Bank, 1992. World Development Report -1992. Oxford University Press.

Zak, P. J. and Knack, S., 2001. Trust and Growth. Economic Journal, vol.-111, 295-321.