Climate Change And Sustainable Development Essay

1411 words - 6 pages

Climate Change and Sustainable Development
This research paper is about climate change with the concept of sustainable development, meaning that it will approach the climate change problem with an economical way and try to solve it with the new growth theory. New growth theory argues that innovations, population growth, new technology, and creative destruction are connected to each other and that these connections will solve the climate change problem. The exponential technology growth, improved international private rights and improved use of human capital are some of those key terms what the theory is all about. The most important thing towards the solution is human capital. Improved human capital will lead to a better efficiency of industry and therefore improve the environmental friendliness. Government plays as an important role even though the regulations of market are set in minimum. Government’s job is to create a good business atmosphere with attractive incentives. These incentives and good private property rights will help to achieve this business atmosphere and new innovations will come out. The biggest barrier for plan is the theory itself. An example of this is the neoliberal revolution in Argentina during 1989-1999 when Carlos Menem was the president of the country. His neoliberal and market liberal politics, which are one of the corner stones of new growth theory, achieved big victories in the start of 90s but when the economy started to slow down and the unemployment exploded the problems doubled up. To avoid this kind of market overheating, corporate leaders and politicians had to be liable for their decisions. If those people manage to be liable for markets, the markets will repair themselves and also the problems with nature will get solved. However, this economical scenario, where humanity solves the problems of global warming will approach the utopian world, where everything is perfect. The utopian world is possible if everything would work like we assume. However, the coincidence is always in the presence causing unpredictable phenomena, which will make it hard to overcome the negative effects of global warming. Thus, it is impossible to guarantee that this economical model works properly because this is the first time when the theory is in use and the real consequences are still uncertain. On the paper, the new growth theory looks very nice, however the truth might be the opposite and it might not work in real life. Communism is an example of a theory, which looked good on paper but failed in real life. The reasons for the failure are human’s greediness and egocentricity. When a factory is jointed, no one actually cares about the property. The same phenomenon is happening with environment. No one actually owns environment and that is why the environmental cooperation is so difficult between all the countries. Everybody is looking for their own interest and the externalities are ignored. However, many economists argue...

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