Externality And Sustainable Development

This paper defines the concept of Sustainable Development in two ways. First, it is the sustainability of the social welfare; second, it is the Intergenerational Equity. And, this paper concentrates its study on the subjects of the Sustainable Development, Intergenerational Equity and Intergenerational Externality. This paper suggests that Intergenerational Equity is one of the indispensable elements of the Sustainable Development. Unfortunately, there are lots of cases of the Intergenerational Externality with our intergenerational allocation and consumption of the resources in our society. And these problems caused by these cases of Intergenerational Externality are to lead to the imbalance of the earning and cost between the different generations involved, and in the end, these problems are surely to infect the sustainability of the development of the society. Furthermore, this paper is to do a thorough analyze of the characters and the cause of the problem of the Intergenerational Externality, and delicately explain how to solve this problem. In the end, with a critical study of those theories that already exist, this paper suggests, in order to solve the problem cause by Intergenerational Externality and make sure the sustainable development of the society, it will be an efficient way to pricing the resources according to the development of the productivity of the whole society.