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Posted: November 7th, 2019
Often Sustainable Growth is confused with Sustainable Development. Growth is natural increase in material or mass which is quantitative and Development is to bring out the true potential which is qualitative (Daly 1990).Satisfying the needs of the present without causing problem to the upcoming generations is called Sustainable Development. With the effect of Sustainable Development by knowing its importance, making it as the top priority by the United Nations, the Economic Growth will increase by 5 to 10 fold as stated by the BCR (“Brundtland Commission Report”) (Brundtland 1985). This economic growth is not just the development of the technology, it is the growth without effecting the ecological balance of the Environment.
The gift of the nature is that it can undo any damage done to it, in a certain span of time. This undoing phenomenon of nature is called natural healing of natural assimilation. Everything in this universe has a limit, same goes to the Nature.
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The natural assimilation can only be done up to some extent (Barbier and Markandya 1989). From the past centuries, human development has contaminated the nature in all possible kinds of ways, which includes land, air, soil and water (Ang 2008). Sustainable growth sees that, the humans develop in such a way that there is no contamination directed towards the nature which is above its natural assimilation limit. The two main principles which can lead to sustainable development are 1.
Maintaining balanced yield where recycling rate is equal to production rate 2. Waste produced or emitted should be less than natural assimilation limits (Barbier, Markandya et al. 1990).The prioritization of Sustainable Growth by the United Nations lead to the implementation of EGN (“Energy Growth Nexus”), which will take the human development through a path where Economic Growth is achieved by Energy Conservation, which means reducing Energy Consumption including emission of Greenhouse gases and also usage of Fossil Fuels (Al-mulali, Fereidouni et al. 2014) (Ozturk 2010). Gross Domestic Product per Capita is used for representing the Economic growth when calculating for the country as a whole. But when calculating for a sector, other economic activities can be used for example Industrial Growth of the sector (Marques, Fuinhas et al.
2016). Taking in the account of Sustainable GDP, Index of Sustainable Economic Growth decides whether a country is rich or poor (Goosens, Mäkipää et al. 2007). A perfect balance of society, environment and economy should be made for achieving Sustainable Growth. A country having high GDP but is more polluted than when compared to a country which has low GDP and is less polluted, can end up poor according to ISEG (Menegaki and Tugcu 2018).In past years Asia experienced increase in its wealth but not Environment (Lohani, Kawai et al. 2016).
Neglecting the environment resulted in effecting the climate, but with improved efficient energy production, these countries achieved the global energy goals (Poole and Berman 2001) (Bank 2000). The four main hypothesis determining the economic growth in the countries are growth, feedback, neutrality and conservation hypothesis. Growth hypothesis is where energy consumption is directly proportional to economic growth (Apergis and Payne 2012). Conservation hypothesis is where there is more economic growth and less energy consumption. Feedback hypothesis is where the priority run between energy consumption and economic growth. Neutrality hypothesis is where the energy consumption does not dependent on economic growth (Menegaki and Tiwari 2017). Based on the studies done by (Menegaki and Tugcu 2018) on single countries as type 1 (Lee and Chang 2007), group of Asian countries as type 2 (Fang and Chang 2016) and worldwide countries as type 3 (Fatai, Oxley et al.
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2004). The results indicate that 36% of the studies conducted in type 1 and type 3 countries are supported by the growth hypotheses, 22% by conservation hypothesis and 6% by neutrality hypothesis. The growth hypothesis is usually found in underdeveloped countries where there less economic growth as well as energy consumption. Highly developed countries come under conservation hypothesis which made great progress in increasing their economic growth while consuming less energy.
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