Page 8 - Discussion Paper: Sustainability Dynamics of Resource Use and Economic Growth
P. 8
Discussion Paper
Figure 5: Base Run: Overshoot and Collapse
Source: TERI Research
Figure 6: Policy Testing: Increasing Resource Efficiency
Source: TERI Research
improving resource efficiency of the economy is able to sustain Natural Resource Regeneration Rate = increased to 3% from
growth for relatively longer time it still is unable to avoid 2%
the overshoot and fall in the economy.
The above scenario models outcomes of an intervention
Policy 2: Resource Regeneration/Restoration and which, in addition to improving the resource efficiency,
Green Growth results into increase in the resource regeneration rate by
50%. This implies that the economy is actively involved in
Model Parameters for Testing Green Growth Policy the resource restoration process. However, the carrying
Economy’s Constant Rate = 1% to 7% capacity of the resource remains the same. Thus, although
Resource Intensity of Economy = reduced to 0.5 kg/rupee the rate of regeneration increases, the maximum growth in
from 1 kg/rupee stock of resources would remain the same. The simulation
8 AUGUST 2015
Figure 5: Base Run: Overshoot and Collapse
Source: TERI Research
Figure 6: Policy Testing: Increasing Resource Efficiency
Source: TERI Research
improving resource efficiency of the economy is able to sustain Natural Resource Regeneration Rate = increased to 3% from
growth for relatively longer time it still is unable to avoid 2%
the overshoot and fall in the economy.
The above scenario models outcomes of an intervention
Policy 2: Resource Regeneration/Restoration and which, in addition to improving the resource efficiency,
Green Growth results into increase in the resource regeneration rate by
50%. This implies that the economy is actively involved in
Model Parameters for Testing Green Growth Policy the resource restoration process. However, the carrying
Economy’s Constant Rate = 1% to 7% capacity of the resource remains the same. Thus, although
Resource Intensity of Economy = reduced to 0.5 kg/rupee the rate of regeneration increases, the maximum growth in
from 1 kg/rupee stock of resources would remain the same. The simulation
8 AUGUST 2015
