Environmental Resource Allocation Efficiency and Sustainable Development

The issues of equity and efficiency in resource allocation are particularly important in environmental and resource economics. This chapter takes it as main topic and then further analyzes the way to sustainable development (Sect. 3.1). Models can be used to analyze intertemporal resource allocation, but the scarcity of real resources leads to few situations matching the theory. In order to achieve intergenerational environmental equity, it is necessary to implement efficient and sustainable systems based on the optimization of dynamic, static and intergenerational allocation of natural resources (Sect. 3.2). Indeed, to achieve sustainable development, it is not enough to consider only market mechanisms and their efficiency, but to consider the appropriate trade environment for simultaneously developing policies aimed at the efficient allocation of resources (Sect. 3.3). The chapter also focuses on the intertemporal allocation of renewable and exhaustible resources. It is a necessary condition for the market to meet the requirements of a clear property rights structure and public information on future prices. This should be the direction of efforts in policy formulation, which in turn makes the resource environment serve the high-quality development of China’s economy in five aspects: finance, price, equity, ecological compensation and value accounting (Sect. 3.4).