Sustainable development in an economy-ecology integrated model
AbstractIn this paper an endogenous growth model is analyzed which takes account of environmental deterioration and abatement. The environment plays a role both in production and welfare. It is common practice to solve growth models by looking at a balanced growth solution, which is often associated with sustainable development. We derive the conditions under which sustainable development is feasible. Furthermore, the conditions for optimal balanced growth are derived. Finally, some comparative statics of the balanced growth solutions are discussed and a numerical example is given to illustrate the model and to provide further insight.
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Bibliographic InfoPaper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0048.
Date of creation: 1994
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Web page: http://www.feweb.vu.nl
Sustainable development ; Endogenous growth ; Renewable resources ; Environmental quality;
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