Review Of Previous Empirical Literature

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Review of previous empirical literature: A core element in the economic literature is the center on expansion and the use of man-made, natural, and social capital. The fact that there are three different types of capital that can contribute to economic growth has led to a difference between weak and strong sustainability, as discussed by Pearce and Turner (1990), and Rennings and Wiggering (1997). Weak sustainability describes a situation where it is assumed that the total capital is maintained and that the three different elements of the capital stock can, to some extent, be used to substitute each other in a sustainable solution. On the other hand, strong sustainability requires each of the three types of capital to be maintained in its own right, at least at some minimum level. An example of an application of the strong sustainability concept is Herman Daly’s criteria, which state that renewable resources must be harvested at (or below) some predetermined stock level, and renewable substitutes must be residential to offset the use of exhaustible resources (Daly, 1990).
Arrow et al., 2004, in a joint authorship between leading economists and ecologists, present an approach for evaluating alternative criteria for consumption, seen over time in a sustainable development perspective. Inter-temporal consumption and utility are introduced here as measurement points for sustainable development. One of the determinants of consumption and utility is the productive base of
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