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Does improved environmental policy enhance economic growth?

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Author Info
Knut Rosendahl
Abstract

The environmental impacts on an economy is studied over time using endogenous growth theory. Externalities from the environment on production are central in the analysis, and we examine whether an optimal path realizes more rapid economic growth. The paper focuses mainly on developing countries, where production is largely influenced by the environmental quality. The result of the analysis indicates that the economic growth rate may not depend on the internalization of the environmental externality, but rather on the internalization of the human capital externality. The level of economic activity, however, generally seems to depend on the internalization of both externalities. Copyright Kluwer Academic Publishers 1997

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File URL: http://hdl.handle.net/10.1007/BF02441404
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental & Resource Economics.

Volume (Year): 9 (1997)
Issue (Month): 3 (April)
Pages: 341-364
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Handle: RePEc:kap:enreec:v:9:y:1997:i:3:p:341-364

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Related research
Keywords: developing countries; endogenous growth; environmental externalities;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-57, April. [Downloadable!] (restricted)
    Other versions:
  3. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October. [Downloadable!] (restricted)
  4. Chung-Huang Huang & Deqin Cai, 1994. "Constant-returns endogenous growth with pollution control," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 4(4), pages 383-400, August. [Downloadable!] (restricted)
  5. Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February. [Downloadable!] (restricted)
  6. Hammond, Peter J & Rodriguez-Clare, Andres, 1993. " On Endogenizing Long-Run Growth," Scandinavian Journal of Economics, Blackwell Publishing, vol. 95(4), pages 391-425, December.
  7. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec.. [Downloadable!] (restricted)
  8. Jeroen Bergh, 1993. "A framework for modelling economy-environment-development relationships based on dynamic carrying capacity and sustainable development feedback," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 395-412, August. [Downloadable!] (restricted)
  9. Sjak Smulders, 1995. "Entropy, environment, and endogenous economic growth," International Tax and Public Finance, Springer, vol. 2(2), pages 319-340, August. [Downloadable!] (restricted)
  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Poul Schou, 2000. "Polluting Non-Renewable Resources and Growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 16(2), pages 211-227, June. [Downloadable!] (restricted)
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