Economic growth and environmental impact: evaluating alternatives

Abstract

The environment is no longer to be considered a free good, whether it is utilized for economic growth or is affected by it.This is an exploratory paper attempting to depict a conceptual framework for policy planning embodying growth, environmental and societal variables. The aim is to identify a comprehensive framework and suggest an operationally feasible set of methodologies and processes. In view of the limitations of the current theoretical andmethodological framework, the suggested heuristic approach is an attempt to develop and specify a realistic and convenient process for operational purposes. Moreover, any future developments in theory, methodology, measurement and information is considered to be complementary to, rather than competing with, the proposed framework. The contention is that while the on-going research undertakings are expected to improve the theoretical and methodological framework of the existing body of doctrine, there appears to be a need for a systematic operational framework for policy planning keeping in prospects realism, reasonableness andcertain balances. Sufficient flexibility should be maintained to adjust the particular aspects of the system in light of new information and experience.In summary, the issues of growth and the resultant environmental and societal implications are expounded upon and a conceptual framework is suggested for the process of national priority setting.The desirability of continued growth for the developed and developing countries is predicated upon the premise that environmental and societal variables are to be explicitly embodied in the allocation process so that the composition, structure and the rates of economics growth are compatible with the quality of life (Q/L).