A Modified CES Production Function Model and Its Application in Calculating the Contribution Rate of Energy and Other Influencing Factors to Economic Growth

In the analysis of economic growth factors, the constant elasticity of substitution(CES)production function model is used to calculate the contribution rates of influencing factors to economic growth. However, the traditional CES production function model fails to consider the staged characteristics of economic growth. Therefore, this study provides a modified model of the CES production function. With regard to its application, a new method for calculating the contribution rates of energy and other influencing factors to economic growth is proposed using a modified CES production function model. This work concludes by calculating the contribution rates of Chinese energy and other influencing factors to economic growth.

A THEORETICAL DISCUSSION ON TYPES AND MEASUREMENT OF SUSTAINABLE DEVELOPMENT

Classifying the types and measurin g sustainable development are important contents of theoretical studie s on sustainable development.Scient ifically reflecting the characteristics of sustainable development an d favorably classify-ing the types of sustainable develop ment are the basis and objective of me asuring sustainable development.B y using the methods of coordinatively analyzin g man-land relationship and economi c analysis,especially by combining with constant elasticity of substitution(CES)production function,this paper advances average sustainable gross dom estic production(ASGDP),inquires into the mutually coordin ative and interdependent relationship between humane capital and natur al capital in the process of sustainabl e development.It also sets up an index system of measuring sustainable development and a type systemof sustainable deve lopment.then according to this index system,if firstly classifies the s ustainable develop-ment,moderate sustainable develop ment,and strong sustainable develo pment,and it also discuss them theoretical signifi-cance.Secondly,it probes into the minimum cost,structure optimizatio n and sustainable development.At la st,it dis-cuss the type classification of sustainable development on development sequence,and points out theoretically the amount of transitions among 8basic regional sustainable development types is 56.in the process of productive expan sion this transi-tion type embodies the input increase of humane capital is greatly larger than that of natural capital.On the c ontrary,econo-mized humane capital transition is a result of progressively decreasing marginal rate of technical substitu tion of humane capital to natural capital.

A Growth Framework Using the Constant Elasticity of Substitution Model

Some results in growth theory based on the Cobb-Douglas production function model are generalized when the production function is chosen to be the Constant Elasticity of Substitution (CES) function. Such a generalization is of considerable interest because it is known that the Cobb-Douglas function cannot be used as a suitable model for some production technologies (like the US economy and climate changes). It is shown that in the steady state the growth rate of the output is equal to the Solow residual and that the capital deepening term becomes zero. The CES function is a homogeneous function of degree two and a result is obtained on the wage of a worker using the Euler’s theorem.