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Conservation capital and sustainable economic growth

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  • Donna Ramirez Harrington
  • Madhu Khanna
  • David Zilberman

Abstract

An endogenous growth model, which links pollution to ineffective input-use, is developed to examine the potential for achieving balanced growth while preserving the environment through investment in conservation capital. We derive conditions under which individual preferences for environmental quality and private incentives for investment in conservation capital can lead to non-decreasing environmental quality with balanced growth even in the absence of environmental regulations. Additionally, conditions under which investment in conservation capital can enable an environmentally regulated economy to achieve a higher rate of sustainable balanced growth than otherwise are analysed. Copyright 2005, Oxford University Press.

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  • Donna Ramirez Harrington & Madhu Khanna & David Zilberman, 2005. "Conservation capital and sustainable economic growth," Oxford Economic Papers, Oxford University Press, vol. 57(2), pages 336-359, April.
    • Handle: RePEc:oup:oxecpp:v:57:y:2005:i:2:p:336-359
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    File URL: http://hdl.handle.net/10.1093/oep/gpi010
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    Cited by:

    1. Sasmal, Joydeb, 2014. "Foodgrains Production in India – How Serious is the Shortage of Water Supply for Future Growth?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 69(2), pages 1-14.
    2. Sasmal, Joydeb & Weikard, Hans-Peter, 2013. "Soil Degradation, Policy Intervention and Sustainable Agricultural Growth," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(4), pages 1-20, November.
    3. Cheng, Chu-chuan & Chen, Ping-ho & Chu, Hsun & Wang, Yi-chiuan, 2024. "What growth policies protect the environment? A two-engine growth model," Journal of Macroeconomics, Elsevier, vol. 81(C).
    4. Joao R. Faria & Peter Mcadam & Bruno Viscolani, 2023. "Monetary Policy, Neutrality, and the Environment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(7), pages 1889-1906, October.
    5. Vella, Eugenia & Dioikitopoulos, Evangelos V. & Kalyvitis, Sarantis, 2015. "Green Spending Reforms, Growth, And Welfare With Endogenous Subjective Discounting," Macroeconomic Dynamics, Cambridge University Press, vol. 19(6), pages 1240-1260, September.
    6. Psaltopoulos, Demetris & Balamou, Eudokia & Skuras, Dimitris & Ratinger, Tomas & Sieber, Stefan, 2011. "Corrigendum to "Modelling the impacts of CAP Pillar 1 and 2 measures on local economies in Europe: Testing a case study-based CGE-model approach" [J. Policy Model. 33 (1) (2010) 53-69]," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 677-677, July.
    7. Xie, Chengyuan & Jin, Xiaotong, 2023. "The role of digitalization, sustainable environment, natural resources and political globalization towards economic well-being in China, Japan and South Korea," Resources Policy, Elsevier, vol. 83(C).

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