Endogenous growth with material balance principle
This paper considers how environmental problems affect economic growth. In order to explain the relationship between the economy and the environment, we impose the law of mass conservation and its corollary, the mass balance principle, and consider pollution from both production and consumption sectors. Utilising a model which incorporates the material balance principle on endogenous growth theory, we obtain the following results: where environmental problems are not serious, optimal economic growth rates at a steady state rise as these problems become more severe - however, there is a threshold for the degree of their seriousness, beyond which the relationship is reversed, i.e., environmental problems lower optimal economic growth rates; a similar relationship is found between the economic growth rates at social optimum and at a laissez-faire competitive equilibrium. The optimal growth rate is higher (lower) than the equilibrium growth rate if the degree of seriousness of environmental problems is below (above) a threshold.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 6 (2006)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID=14|
When requesting a correction, please mention this item's handle: RePEc:ids:ijgenv:v:6:y:2006:i:1:p:4-28. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.