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Waste-heat and economic growth in the very long run

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  • Curtis, Chadwick C.
  • Lugauer, Steven

Abstract

This paper presents a model of economic growth that incorporates production damages due to waste-heat. Our approach builds from the models developed to study how carbon emissions impact the economy; however, the direct waste-heat channel that we consider is distinct from the on-going greenhouse gas induced climate change. If energy use continues to rise exponentially with economic growth, then direct heat also has the potential to elevate global temperatures. In the model, sustained economic growth continues in the long run only if something is done about this waste-heat.

Suggested Citation

  • Curtis, Chadwick C. & Lugauer, Steven, 2025. "Waste-heat and economic growth in the very long run," Economics Letters, Elsevier, vol. 254(C).
    • Handle: RePEc:eee:ecolet:v:254:y:2025:i:c:s0165176525003040
    DOI: 10.1016/j.econlet.2025.112467
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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