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Long-term economic growth under environmental pressure: An optimal path

Listed author(s):
  • Dai, Feng
  • Li, Pengpeng
  • Liang, Ling
Registered author(s):

This paper presents a model, based on the advance-retreat course (ARC) model (Dai, Liang, & Wu, 2013; Dai, Liu, & Liang, 2013), of long-term economic growth under environmental pressure. The model is used to explain economic convergence and divergence; construct an optimal long-term growth model for basic, emerging and real total output; derive an optimal growth accounting equation; indicate the optimal paths of long-term growth and economic structure change; analyze empirically the growth for U.S. and China. Among the findings are that emerging industries contribute significantly to real output in the long term; that economic diversification can increase real output and promote long-term growth. The paper suggests policy orientations that are needed to avoid economic collapse.

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File URL: http://www.sciencedirect.com/science/article/pii/S1062976915000393
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Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

Volume (Year): 59 (2016)
Issue (Month): C ()
Pages: 15-24

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Handle: RePEc:eee:quaeco:v:59:y:2016:i:c:p:15-24
DOI: 10.1016/j.qref.2015.03.008
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620167

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