Miljøproblemer og endogen vækst

The article surveys some of the major topics covered in the literature on endogenous growth and environmental problems. Crucial preconditions for permanently balanced growth are unitary substitution elasticities between man-made and natural inputs in the aggregate production function as well as in society’s utility func - tion, and constant returns to scale with respect to reproducible inputs. The literature identi fies four situations in which policy changes can improve the long-term prospects for both the environment and growth simultaneously. These are: when nature has a non-ri val productive role; when environmental policy affects other, non-environmental market failures; when utility depends on factors other than the environment and the consumption goods produced; and when the source of pollution comprises non-rene - wable resources.