A Critical Analysis: Steady State Economy, Green Growth, and Systems

This essay critically evaluates the concept of a steady state economy, contrasting it with the present economic system, and assessing the viability of green growth. The analysis begins with an explanation of the steady state economy, drawing upon neoclassical growth theory and highlighting its key characteristics, such as constant output and capital stock per person once the steady state is reached. It contrasts this with the current mixed market economy, using Australia as an example, and discusses how the steady state differs in terms of growth dynamics and economic stability. The essay then examines green growth, defining it as economic growth that ensures natural capital assets provide environmental services and resources. It considers whether green growth is a feasible alternative, particularly for developing economies, by analyzing its potential to reduce poverty and vulnerability to climate change. The essay concludes that green growth is viable for developing economies if policies align with structural characteristics, promoting innovation and energy efficiency. The essay uses references to support the arguments.