Economics of sustainable development: Issues and concerns

Sustainable development is the concept of a relationship between economic growth and the environment. It is a term widely used by politicians all over the world, but lacks a uniform interpretation. Important as it is, the concept of sustainable development is still being developed and the definition of the term is constantly being revised, extended, and refined. Its main components are the economic, social, and environmental factors. Economics has a crucial role to play in this multidisciplinary endeavor (Gillis 2005). Sustainable development is important to all societies, but critical for poor ones, which depend more heavily on natural resources such as soils, rivers, fisheries, and forests etc. It is argued that environmental problems in developing countries are predominantly driven by poverty, while those of wealth are driven by affluence and over consumption (Perkins, Radelet, Snodgrass, Gillis and Roemer 2001). Will the world be able to sustain economic growth indefinitely without running into resource constraints or devastating the environment beyond repair? There are trade-offs between the goals of achieving high and sustainable rates of economic growth and attaining high standards of environmental quality (Panayotou 2003). The global community today is working towards a potential double dividend; meeting essentials needs of economic growth and fighting poverty, while at the same time leaving a smaller environmental footprint (Saghir and O'Sullivan 2006). In this background, this paper addresses some pertinent issues concerning economics of sustainable development. Brundtland Report (WCED 1987)states that sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Caring for Earth provides another definition of sustainable development that improving the quality of human life while living within the carrying capacity of supporting ecosystems.