How does urbanization affect the capital forms of sustainable development?
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2020-08-20
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en
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A high global urbanization rate appears to coexist with increasing unsustainability. This paper investigates the effects of global urbanization on sustainable development. The study finds no direct effect of urbanization on any of the capital forms (natural, produced, and human), yet finds indirect effects of urbanization on produced and natural capital through an increase in school enrolment and decreased natural resource use. Literature suggests a trade-off between the positive effects of urbanization on produced and human capital, but a negative effect on natural capital. This is caused by an increase in consumption, which puts a strain on natural resources. An increase in population size could further worsen this problem. A Generalized Structural Equation model finds urbanization increases school enrolment, which increases natural and produced capital. However, it also decreases population size slightly, which has negative effects on productivity through a decrease of workforce. We conclude that urbanization has no direct effects on any of the capital forms yet does influence some of the components through individual effects. Governments should view education as an important driver of sustainability and minimize the use of natural resources. Health care, institutional quality, and trade provide overall improvements for sustainable development.
Name: Nicky Kneefel
Student Number: s4610474
Supervisor: Juliette Alenda-Demoutiez
Date: July
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Faculteit der Managementwetenschappen