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Economic Growth and the Environment: A Review of Theory and Empirics

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William A. Brock
M. Scott Taylor

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Abstract

This paper reviews both theory and empirical work on economic growth and the environment. We develop four simple growth models to help us identify key features generating sustainable growth. We show how some combination of technological progress in abatement, intensified abatement, shifts in the composition of national output and induced innovation are necessary for sustainable growth, and then demonstrate how growth models employing any one of these mechanisms generate other potentially refutable predictions on abatement costs, pollution levels, or emission intensities.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10854.

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Date of creation: Oct 2004
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Handle: RePEc:nbr:nberwo:10854

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F1 - International Economics - - Trade
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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