Sustainable development with extractive and non-extractive use of the environment in production
This paper considers an economy in which the environment plays a role both in welfare and production. An endogenous growth model, which allows for abatement activities, is formulated in order to study the impact of pollution on welfare and long-term growth. Conditions for optimal and balanced economic growth are discussed and a numerical example is given to provide some insight in the mechanisms at work in the model. Copyright Kluwer Academic Publishers 1995
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Volume (Year): 6 (1995)
Issue (Month): 4 (December)
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