Answer:
Introduction
This paper sets out to provide an overview of the economics of a sustainable population,
including a discussion of key controversies in the literature and in policy debates. The
Australian context is emphasised.
The first task is to define the field. This is important because sustainability is a contested idea
with a range of interpretations. For some it is all about the environment—this could be local
through urban congestion, water shortages and planning bottlenecks, and/or global through
carbon pollution, for example. Economists generally incorporate these and other aspects of
sustainability into a wider view, rooted in the field of economic development. This is the
position taken here and population is seen as a mediating factor in achieving sustainable
economic development.
Population is shown to affect economic development through a range of channels. The age
distribution is arguably the most important of these—more important than the population
growth rate itself. The idea of a socially optimal1
population growth rate or target population
level is argued to be a bridge too far, as is the notion of Australia’s ‘carrying capacity’. There
are simply too many uncertainties and too many value judgements required to make such
calculations. However, we can analyse the effects of population change on a range of
particular variables. This could be done through a population policy framework which would
show the role of population in connecting and guiding a range of public policy areas such as
health, education, urban planning and regional development. The last two chapters of the
third Intergenerational Report are a useful step in this direction.2
Explanation:
