Model construction and application analysis under environment and resource constraints in China

¹ Statistics, College of Economics and Management, Kashgar University, 844006 Kashi, China
² Economics, La Jolla Country Day School, 9490 Genesee Ave, La Jolla, San Diego, CA 92037, USA

^* Corresponding author: 1718750146@qq.com

Abstract

How to make sustainable development in the new era has been becoming the most important issue in China. This research explains why China could rapidly increase in the past, and how to fulfil a sustainable development under the resource and environmental constraints in the future by employing an endogenous growth model which includes “learning by doing” factors. Our model explains a learning mechanism called “learning by doing” and the knowledge reserve needed for the sustainable development. The empirical estimation results shows: under threats of environmental pollution and restrictions on natural resource depletion, an sustainable development is possible. Human capital use and technological advances crucially support the maintenance of sustainable growth, and the learning-by-doing effect increases the explanatory power of capital for knowledge production. The sustainable development awareness of consumers determines the economic growth quality. The explanation of the environmental pollution parameter could be extended to a policy simulation variable to measure the practical management level and the contamination controlling effect.