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Environmental policy and sustainable economic growth: An endogenous growth perspective

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  • Smulders, J.A.

    (Tilburg University)

Abstract

This paper investigates the consequences of environmental policy for welfare, consumption and production growth in a situation in which environmental quality is initially too low. The natural environment is corporated in endogenous growth theory in a way that is consistent with some simple notions from the laws of thermodynamics. Environmental policy affects growth, both in the long run and in the short run, by affecting the productivity of investment and the savings behavior of consumers. The environment provides necessary inputs to economic production and accumulation processes. Hence improvements in environmental quality that follow environmental policy may boost the productivity of the environment and growth.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-153415.

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Date of creation: 1995
Date of revision:
Publication status: Published in De Economist (1995) v.143, p.163-195
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-153415

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Web page: http://www.tilburguniversity.edu/

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Cited by:
  1. Smulders, J.A., 1997. "Should Environmental Standards be Tighter if Technological Change is Endogenous?," Discussion Paper 1997-79, Tilburg University, Center for Economic Research.
  2. Smulders, J.A., 1995. "Entropy, environment and endogenous economic growth," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153413, Tilburg University.
  3. Walid Oueslati, 2013. "Short and Long-term Effects of Environmental Tax Reform," Working Papers 2013.09, Fondazione Eni Enrico Mattei.
  4. Ramirez, Donna Theresa J. & Khanna, Madhu & Zilberman, David, 2002. "Conservation Capital And Sustainable Economic Growth," 2002 Annual meeting, July 28-31, Long Beach, CA 19846, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Nelissen, Dagmar & Requate, Till, 2004. "Pollution-Reducing and Resource-Saving Technological Progress," Economics Working Papers 2004,07, Christian-Albrechts-University of Kiel, Department of Economics.
  6. Michiel Keyzer & Max Merbis & Roelf Voortman, 2008. "The Biofuel Controversy," De Economist, Springer, vol. 156(4), pages 507-527, December.
  7. Krysiak, Frank C., 2006. "Entropy, limits to growth, and the prospects for weak sustainability," Ecological Economics, Elsevier, vol. 58(1), pages 182-191, June.
  8. Jacobsen, Henrik Klinge, 2001. "Technological progress and long-term energy demand -- a survey of recent approaches and a Danish case," Energy Policy, Elsevier, vol. 29(2), pages 147-157, January.

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