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Endogenous Growth and Environmental Policy

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  • Cees Withagen
  • Nico Vellinga

Abstract

This paper examines the relationship between environmental policy and growth, from the perspective of endogenous growth theory. In particular three standard endogenous growth models are supplemented with environmental issues, such as pollution and exhaustibility of natural resources. It is found that these new elements may affect the long run growth rates, but this is not a universal outcome. One consequence for economic policy is that optimal taxation to realize a social optimum should take account of environmental issues.

Suggested Citation

  • Cees Withagen & Nico Vellinga, 2001. "Endogenous Growth and Environmental Policy," Growth and Change, Wiley Blackwell, vol. 32(1), pages 92-109.
    • Handle: RePEc:bla:growch:v:32:y:2001:i:1:p:92-109
    DOI: 10.1111/0017-4815.00151
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    Cited by:

    1. Boubaker, Sabri & Omri, Anis, 2022. "How does renewable energy contribute to the growth versus environment debate?," Resources Policy, Elsevier, vol. 79(C).
    2. X. Pautrel, 2008. "Reconsidering the Impact of the Environment on Long-run Growth when Pollution Influences Health and Agents have a Finite-lifetime," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(1), pages 37-52, May.
    3. Hassan, Mahmoud & Oueslati, Walid & Rousselière, Damien, 2020. "Environmental taxes, reforms and economic growth: an empirical analysis of panel data," Economic Systems, Elsevier, vol. 44(3).

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