Sustainable Economic Growth: Sustainable And Sustainable Development

Economic growth is defined as an increase in the ability of an economy to produce goods and services, comparing different time periods. Traditionally economic growth is measured in terms of gross national product or gross domestic product (GDP). In simplest terms, economic growth refers to an increase in aggregate productivity. Sustainability is the study of how natural systems function, remain diverse and produce everything it needs for the ecology to remain in balance. It also acknowledges that human civilisation takes resources to sustain our modern way of life. Sustainable economic growth means a rate of growth which can be maintained without creating other significant economic problems, especially for future generations . Environmental

I will go on to outline why these two aspects are complementary and examine evidence that supports this claim.
Economic growth heavily relies on our natural resources therefore they play a pivotal role in our world today. However, economic theory suggests that being environmentally sustainable limits economic growth. Strong sustainability, which is what we should aim to achieve is outlined as; The existing stock of natural capital must be maintained and enhanced because the functions it performs cannot be duplicated by manufactured capital (Hart, 1998). In more recent years there has been in an increase in debates over sustainable development and how it is meant to be achieved. One factor hindering this is the poverty environmental trap is very common in developing countries. This trap is defined as the relationship between the poverty condition and the degradation of the environment (Finco, 2009). Some studies show that there is a connection between poverty and the environment as higher levels of poverty imply less environmental sustainability i.e. more natural resources being exploited. According to the

The curve (Figure 1) shows that as a place gets richer there is more pollution and environmental degradation however there is a turning point. This turning point signifies that as society improves its environmental impact the level of environmental degradation decreases. Empirical evidence justifies this curve for a number of reasons such as improved technology. Long term economic growth is reliant on technology and higher productivity. The increased rate of higher productivity has resulted in less raw materials and natural resources being used, therefore increased environmental sustainability. Additionally, government regulation also places a role in shaping the Kuznets curve. Initially, according to the curve in figure 1, environmental sustainability does not wield much importance. As the GDP increases, a government “can afford” to implement taxes and regulate the use of raw materials which harm public health and living standards (Pettinger, 2017). These taxes and regulations are implemented post turning point. Despite this, the curve does have its limitations. These include how it is not just pollution that determines a countries current economic growth. Environmental regulation also plays a role in the shape of the curve as there are examples of how a higher income and increased education encourages local communities to