504
K. Yang
1. Ecological modernization of economic structure
The basic framework of traditional economy is that resources obtained from the
environmental system are transformed into goods to meet the needs for manmade products while “three kinds of wastes” are discharged into the environment.
This kind of cowboy economy is the fundamental reason for non-sustainability.
Therefore, reforming the economic structure to gradually delink economic growth
from environment-affecting input (resources) is the paramount strategic factor of
sustainable development. It is called the ecological modernization of economic
structure.
Based on the comparison between economic growth and the increased use of
environment-affecting input, ecological modernization of economic structure can be
divided into two patterns:
(1) Absolute ecological modernization: the use of environment-affecting input
keeps falling when economy increases;
(2) Relative ecological modernization: the use of environment-affecting input
remains unchanged or increases slower than the economy.
The two patterns correspond to strong sustainability and weak sustainability
respectively.
M. Janicke et al., focused on factors like energy, iron and steel, cement and shipment that have strong negative effects on the environment, and studied the relation
between economic structural changes and environmental impacts in 31 member states
of the Council for Mutual Economic Assistance and Organization for Economic
Co-operation and Development (OECD). They found the following three patterns:
(1) Absolute structural improvement: GDP has positive growth, the use of
environment-affecting input has negative growth, and absolute environmental
benefits are expected;
(2) Relative structural improvement: the use of environment-affecting input
remains unchanged or increases slower than GDP, and relative environmental
benefits are expected.
(3) Structural deterioration: the use of environment-affecting input increases faster
than GDP.
The first and second pattern corresponds to the absolute and relative ecological
modernization of economic structure respectively, but the third pattern corresponds
to non-sustainability. The ecological modernization pattern of economic structure
depends on consumer demand and R&D capability. As developed countries and
regions are in a stage where they pursue “better quality of life,” information application and services, the structural change is dominated by the tertiary industry that
provides labor and improves the “quality of life.” Possessed with abundant materials,
capital and talents as well as strong R&D capability, they boast advanced technologies as the global center of technological innovation. As such, developed countries
and regions naturally choose and implement the absolute ecological modernization of economic structure. In contrast, developing countries and regions are still in
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