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Sustainable development with extractive and non-extractive use of the environment in production

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  • F. Butter
  • M. Hofkes

Abstract

This paper considers an economy in which the environment plays a role both in welfare and production. An endogenous growth model, which allows for abatement activities, is formulated in order to study the impact of pollution on welfare and long-term growth. Conditions for optimal and balanced economic growth are discussed and a numerical example is given to provide some insight in the mechanisms at work in the model. Copyright Kluwer Academic Publishers 1995

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File URL: http://hdl.handle.net/10.1007/BF00691818
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 6 (1995)
Issue (Month): 4 (December)
Pages: 341-358

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Handle: RePEc:kap:enreec:v:6:y:1995:i:4:p:341-358

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: endogenous growth; sustainable development; environmental quality;

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References

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  1. Miyazawa, M. & Tijms, H.C., 1992. "Comparison of two approximations for the loss probability in finite-buffer queues," Serie Research Memoranda 0008, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. Bovenberg, A.L. & Smulders, J.A., 1993. "Environmental quality and pollution-saving technological change in a two-sector endogenous growth model," Discussion Paper 1993-21, Tilburg University, Center for Economic Research.
  3. F. Butter & H. Verbruggen, 1994. "Measuring the trade-off between economic growth and a clean environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(2), pages 187-208, April.
  4. Smulders, J.A. & Gradus, R.H.J.M., 1993. "The trade-off between environmental care and long-term growth: Pollution in three proto-type growth models," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153405, Tilburg University.
  5. Casey B. Mulligan & Xavier Sala-i-Martin, 1992. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," NBER Working Papers 3986, National Bureau of Economic Research, Inc.
  6. Sergio T. Rebelo, 1992. "Long Run Policy Analysis and Long Run Growth," NBER Working Papers 3325, National Bureau of Economic Research, Inc.
  7. Gruver, Gene W., 1976. "Optimal investment in pollution control capital in a neoclassical growth context," Journal of Environmental Economics and Management, Elsevier, vol. 3(3), pages 165-177, October.
  8. Hofkes, M.W., 1993. "Sustainability in one and two sector endogenous growth models : a note," Serie Research Memoranda 0052, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  9. Frederick Ploeg & Cees Withagen, 1991. "Pollution control and the Ramsey problem," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(2), pages 215-236, June.
  10. Tahvonen, Olli & Kuuluvainen, Jari, 1991. "Optimal growth with renewable resources and pollution," European Economic Review, Elsevier, vol. 35(2-3), pages 650-661, April.
  11. Keeler, Emmett & Spence, Michael & Zeckhauser, Richard, 1972. "The optimal control of pollution," Journal of Economic Theory, Elsevier, vol. 4(1), pages 19-34, February.
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Citations

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Cited by:
  1. Gerlagh, Reyer & Lise, Wietze, 2005. "Carbon taxes: A drop in the ocean, or a drop that erodes the stone? The effect of carbon taxes on technological change," Ecological Economics, Elsevier, vol. 54(2-3), pages 241-260, August.
  2. Gerlagh, Reyer, 2008. "A climate-change policy induced shift from innovations in carbon-energy production to carbon-energy savings," Energy Economics, Elsevier, vol. 30(2), pages 425-448, March.
  3. Reyer Gerlagh & Bob van der Zwaan & Marjan Hofkes & Ger Klaassen, 2004. "Impacts of CO 2-Taxes in an Economy with Niche Markets and Learning-by-Doing," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 28(3), pages 367-394, July.
  4. Bovenberg, A.L. & Mooij, R.A. de, 1997. "Environmental tax reforms and endogenous growth," Open Access publications from Tilburg University urn:nbn:nl:ui:12-74434, Tilburg University.
  5. Donna Ramirez Harrington & Madhu Khanna & David Zilberman, 2005. "Conservation capital and sustainable economic growth," Oxford Economic Papers, Oxford University Press, vol. 57(2), pages 336-359, April.
  6. Dagmar Nelissen & Till Requate, 2007. "Pollution-reducing and resource-saving technological progress," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(1), pages 5-44.
  7. Reyer Gerlagh & Marjan W. Hofkes, 2004. "Time Profile of Climate Change Stabilization Policy," Working Papers 2004.139, Fondazione Eni Enrico Mattei.
  8. Gerlagh, R. & Zwaan, B.C.C. van der & Hofkes, M.W. & Klaassen, G., 2004. "Impacts of CO2-taxes in an economy with niche markets and learning-by-doing," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3764008, Tilburg University.
  9. Hofkes, Marjan W., 1996. "Modelling sustainable development: An economy-ecology integrated model," Economic Modelling, Elsevier, vol. 13(3), pages 333-353, July.
  10. Chen, Jhy-hwa & Shieh, Jhy-yuan & Chang, Juin-jen & Lai, Ching-chong, 2009. "Growth, welfare and transitional dynamics in an endogenously growing economy with abatement labor," Journal of Macroeconomics, Elsevier, vol. 31(3), pages 423-437, September.
  11. Reyer Gerlagh, 2004. "A Climate-Change Policy Induced Shift from Innovations in Energy Production to Energy Savings," Working Papers 2004.128, Fondazione Eni Enrico Mattei.

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