Sustainability in Economic Growth Models: The Interplay Between Climate Change, Resource Allocation, and Market Behaviour

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:The conceptual framework linking climate constraints, resource allocation, and market behavior provides a foundation for empirical testing and model development in environmental macroeconomics.

🏛政策担当者:The paper's discussion of carbon pricing and market reforms offers theoretical support for designing policies that balance economic growth and sustainability objectives.

The paper explores how sustainability can be incorporated in the economic growth models by looking at the nexus between climate change, the efficiency of resource allocation and the behaviour of the market. Conventional growth models, especially Solow-style models, have been extensively criticised as lacking in the ability to take into account environmental limitations, environmental risks and market imperfections. In filling this gap, the research formulates a theoretical framework that introduces sustainability as the key factor that defines the long-term economic performance and resilience. This work uses a qualitative conceptual framework founded on a systematic review of the available literature, policy sources and theoretical input within the field of environmental economics and economic growth theory. The proposed framework describes how climate change serves as an external constraint on economic systems by decreasing their productivity and making the environment more uncertain. It also investigates the resource allocation efficiency capability of enhancing the adaptive capacity and enabling sustainable transitions through optimal capital, labour and environmental resource utilisation. In addition, the market behaviour is also analysed in terms of pricing mechanisms, regulatory and externalities that influence the environmental and economic performance. Conceptual analysis suggests that the negative effects of climate change on economic growth manifest themselves in increased costs and reduced productivity, which can be prevented through efficiency in the allocation of resources and the efficient operation of the market, which is expected to promote innovation, energy efficiency, and sustainable investment. Conversely, a bad distribution and distortion of markets worsen the undermining of the environment and long-run growth opportunities. This study contributes to a cohesive conceptual framework that links the environmental pressures, economic processes, and institutional dynamics. It also provides the theoretical foundation of future empirical confirmation and policy development, particularly on issues such as pricing of carbon, green investment policies and market reform to balance the economic incentives and sustainability objectives.

• semanticscholar https://doi.org/10.71086/iaje/v13i1/iaje1301first seen 2026-07-02 06:22:25