Schools of Economic Thought and Problems of Sustainable Development: Analysis of Theoretical Approaches of Government Regulation Supporters

Abstract

Aim. The presented study aims to analyze approaches to achieving sustainable development proposed by schools focused on strengthening government intervention in economic processes to achieve sustainability.Tasks. The authors examine publications that address the problems of sustainable development by the representatives of post-Keynesianism, green Keynesianism, and environmental economists; determine the main goals of sustainable development outlined by the representatives of the aforementioned schools and identify the tools they offer to achieve sustainability; assess the possibility of using these tools in the real sector of the economy, identifying their strengths and weaknesses.Methods. This study uses the methods of analysis and synthesis as well as comparative-historical and problem-chronological methods.Results. It is found that the examined schools focus on the problems of preserving ecosystems and ensuring sustainable economic growth. Other goals, such as provision of employment opportunities, elimination of poverty and inequality are considered to a lesser extent as resulting from the measures taken by the government for the purpose of the environmental transformation of the economy. It is proposed to introduce various forms of assessment and payment for the use of natural resources and to transfer the flow of investment from resource-oriented towards environmentally oriented industries. The decline in employment associated with such a reorientation can be compensated for by expanding employment in the service sector, reducing working hours, and lowering the retirement age.Conclusions. Measures of transition towards sustainable development proposed by post-Keynesians, green Keynesians, and environmental economists are mainly based on non-market measures and imply the strengthening of the government’s influence. Some measures, such as increasing taxes on the products of “dirty” industries, are reflected in the economic policies of other countries. Other measures, primarily aimed at eliminating poverty, inequality, and unemployment, are not being actively implemented. It should be noted that not all recipes of theorists can be applied in the real sector since they include radical measures, the practical implementation of which can lead to economic collapse and a decrease in the population’s living standards.