Some Theoretical Problems Of Economic Sustainable Growth

The issue of economic sustainable growth has been the focus of government and scientists all over the world, which is a more complicated process than a natural development process. The academia has developed a lot of corresponding research about environment process, environment and economy, but little cognizance about the mechanism. Even if there is some correlative research, most are experiential formulae that are primary. In fact, sustainable growth is an endless process, including much non-linear course, experiential formulae is likely to indeterminacy. The rules of Developmental Economy may be useless to long-term economic sustainable growth, how to build a system of dynamical formulae to recognize economic sustainable growth arouse the wide focus of academia.Chapter 1st is the overviews about the concept and evolving process of economic growth, the implement of economic sustainable growth is a deserved domain. The overviews about economic theory and abundant experiential research indicate that economists try to explain the cause and the course of economic growth. In fact, long-term economic sustainable growth must conquer scale reward descending. Endogenous Growth Theory affords an effective way to solve scale reward descending, but it can't effectively solve the problem of economic growth and environment pollution.Chapter 2nd is for the sake of reviewing the shortage of Endogenous Growth Theory, the thesis simulates Chinese economic growth in the past two decades as an example. Exponential relation between technical change and technical gap is introduced into the Papageorgious-Perez model, then research the dynamic mechanism of China economic growth based on the mended model. The results are: the mended model simulates better the Chinese economic growth than Papageorgious-Perez model. And the thesis decomposes every labor production growth rate into four parts: TFP, capital, education of labor and labor flow across section. The results are: capital is the decisive key of China economic growth in 1978-1997; TFP is the second one, but it is the decisive key of China economic growth after 1997; contribution of education is plus but it is small, and it is decreasing year after year. While contribution of labor flow across section is almost negative except 1992-1999. Through the simulation, Endogenous Growth Theory needs to be reforced; the models need to be improved: measure of technical change and economic sustainable growth. Chapter 3rd is about endogenous technical change how to ensure economic sustainable growth. Based on Endogenous Growth Theory, the thesis improves the Hartman-Kwon model, and technology is divided into basic and applied technology, endogenous technical change is introduced into the model, and if there is pollution, analyzes endogenous human capital and endogenous technical change how to ensure economic sustainable growth in the long run, and ensure whether the EKC exist. It is proven theoretically that EKC exist. The theorem proves: there is unique trajectoryingapproaching the steady state at(c_s,y_s,u_s,ω_s). Economic growth is sustainable in thelong run. Because human capital and technology are cleanly produced, they can be substituted for physical capital in the production, and then more physical capital can be used to control pollution. The role of human capital and technical change is different.Chapter 4th contains the two macro economical policies—pollution tax andpollution permit that can ensure the economic sustainable growth by adjusting the conflict between economic growth and environment. Dividing pollution into pollution flow and pollution stock, we confirm the pollution tax rate and pollution permit price to implement economic optimal growth respectively, and get two theorems that are used to the climate protection in the thesis. By calculating the pollution tax rate and pollution permit price of CO₂ emission from 2004 to 2104 in China according to the theorems respectively, the result are: the pollution tax rate and pollution permit price will be increasing with CO2 emission, the economic measures will be stricter, then the optimal conditions of social planner come into existence, and implement the economic sustainable growth.The full conclusion and discussion are presented in the 5^th chapter.