Study On Economic Theory And Index System Of Sustainable Development

Sustainable development is a comprehensive one involving economy, society, population, resource, environment, culture and many other fields. In the process of modern economic development, pressure of population, depletion of resource and pollution of environment resulted in the issue of sustainable development being put forward directly. At present, sustainable development theory has formed its rudiment with many scholars'tireless researching and with many kinds of theories'nourishing, and the concept of sustainable development has been accepted at large.The purpose of discoursing upon sustainable development was to build a clear outline for further research. In analysis of microeconomic, a couple of unsustainable hypotheses existing in mainstream economic theories were pointed out definitely. Externalities decrease efficiency of resource allocation and damage net society welfare. They are the roots of unsustainable development. Essential measure of eliminating Externalities is to internalize external cost. Efficient property right allocation and government intervention are important means either. Preference for positive utility can regulate unjust resource allocation between different generations. Analysis of macroeconomic demonstrates that sustainable development is nonlinear. It is unpractical to set foot on development road at one time all over the world. Though there exists different preference for sustainability and development, it is an affirming trend to go to unite. Expand centipede game and folk theorem can prove the trend further. IS-LM-EE curves were utilized to discuss equilibrium alteration of the three markets, so as to reflect the process of adjustment among monetary policy, fiscal policy and environmental policy in macroeconomic control.A production function reflecting integrated capitals was built on the work of Romer's endogenous growth theory, which is also one of highlights in the dissertation. Following the function, accurate mathematics deducing can explain complex relationships among each per variable change rate, saving rate, population growth rate, depreciation rate and elasticity of input capitals. Value ranges of per capital growth rate and per income change rate can be educed either. The model constructed in thepaper can forecast some economic details and get some conclusions fitting for theory and reality. It enriches sustainable development theory.Green gross domestic product, genuine savings and ecological footprint were emphasized in the study of index system and evaluation methodology of sustainable development, which were theory elements to later empirical analysis. Furthermore, a single green national account model was brought forward under the frame of Weitzman and Hartwick. In the empirical research, economies of China, Inner Mongolia and Tianjin were quantitatively valued from 1991 to 2003, from which many results gained can be utilized for science decision-making. At the same time, a feasible accounting methodology was created.