maintaining and improving the asset base Rep86 Sustained development or

Maintaining and improving the asset base rep86

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maintaining and improving the asset base” [Rep86]; “Sustained development or meaningful growth are only achieved with a clear commitment at the same time to preserve the environment and promote the rational use of resources”[Edw87]; “ Sustainable economic
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growth means continued growth in real per capita GDP, and this growth is not affected by ecological factors (pollution, resource degradation), or social factors” (Pearce, 1988), etc. Although economists have various kinds of statements of “sustainability” and “sustainable development”, in general they reach a common agreement that sustainability is achieved by maintaining the wellbeing of society (Markulev and Long, 2013). The concept of wellbeing is the key to the economic interpretations of sustainability, however, it is widely measure and defined in general. Therefore, economics of sustainability involves even broader content then resource economics, environmental economics, and ecological economics. Among them, the “sustainability” is a pursuit of maintaining and even improving the living conditions of human beings and future generations, within a given ecological system. Thus it requires to coordinate the relationship between people and nature, also between people and people (inter-generational and intra-generational), involving the scientific, ethical and political issues. Whereas, the “economics” pursues the efficient allocation of scarce resources, involving economic efficiency issues. As Ayres pointed out: “The economics of sustainability encompasses important insights from several fields of science, from thermodynamics to geology, ecology to economics, psychology and political science. Economics as the science of resource allocation, occupies the central position, in some sense. But the resources applicable to sustainability economics range from minerals to species, and from solar energy to geological and hydrological processes, as well as manmade capital and human intelligence. (Ayres, 2008)” Sustainability economics has reinterpreted the concept of “capital”, which was divided into two major categories of “natural capital” and “human capital”. The economists believe that the capital stock, which is the sum of natural capitals and human capitals, is not reduced over time (non-regressive). And the relationship between natural capital and human capital is either substitutable or complementary. The value of natural resources is reflected by its scarcity during the economic development under the realistic society. Modern economics has been gradually accepted the point of view of “absolute scarcity of natural resources”. Sustainability economics recognizes the scarcity of natural resources, believing the logic of “economic scale is much smaller than the carrying capacity of the natural resources and the environment” is no longer applicable. With the rapid expansion of the world population and accelerated consumption of natural resources, economic activities have become increasingly
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