Environment vs. economic growth debate

Radovanović, Bojana and Đukić, Mihajlo (2014) Environment vs. economic growth debate. In: Toward green economy: opportunities and obstacles for Western Balkan countries. Xlibris Publishing, Bloomington, pp. 32-44. ISBN 978-1-503532-946

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In this paper, we have analysed the interaction between the environment and economic growth from theoretical and empirical perspective. When looking at the relationship between environment and economic growth, we should have in mind two roles that nature plays in the economic processes. On the one hand, nature gives resources necessary for the economic activities. On the other, it absorbs the waste and undesirable by-products. Natural resources are considered as an important factor for economic growth. However, the empirical analyses on the relationship between the abundance in natural resources and economic growth are inconclusive. While there are scholars who argue that the countries with ample of natural resources experience the resource curse, there are also contra-arguments, that abundance of resources do not put a curse on countries’ economic development. Moreover, since the natural resources are scarce, the argument goes, and since we are approaching the limits of available resources, economic growth of the conventional kind is not sustainable. However, there are arguments that the availability of natural resources does not constrain economic growth since there are certain economic feedback mechanisms on resource scarcity, such as rise in the price of the resource that is becoming scarce or replacement of the resource by its substitutes.

Item Type: Book Section
Additional Information: COBISS.ID=512282978
Research Department: Sustainable Development
Depositing User: Jelena Banovic
Date Deposited: 14 Dec 2016 14:22
Last Modified: 05 Apr 2020 14:59
URI: http://ebooks.ien.bg.ac.rs/id/eprint/912

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