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Economic Growth, Ecological Technology and Public Intervention

Author

Listed:
  • Mónica Meireles

    () (Faculdade de Economia, Universidade do Porto, ISCTE-IUL, Portugal)

  • Isabel Soares

    () (CEF.UP, Faculdade de Economia, Universidade do Porto, Portugal)

  • Óscar Afonso

    () (CEF.UP, OBEGEF and Faculdade de Economia, Universidade do Porto, Portugal)

Abstract

Seminal works on growth theory had mainly focused on exogenous technological change, where a certain given path of technological change was considered. At the end of the 1980s, a new growth theory emerged allowing for the endogeneity of technological change, where economic agents can affect the pace of technological change and where technology is essentially interpreted as “knowledge”. The present paper aims to develop a simple endogenous growth model to study the effects of taxation on dirty intensive resources and the effects of subsidies on clean/ecological intensive resources. It also intends to analyse how exogenous environmental quality can affect the development of better quality (environmentally cleaner) inputs to production. For that, a dynamic general equilibrium growth model is considered based on the endogenous skill-biased technological change literature. It is shown that final-good sector bias is caused by the technological-knowledge bias, which is promoted by government intervention.

Suggested Citation

  • Mónica Meireles & Isabel Soares & Óscar Afonso, 2010. "Economic Growth, Ecological Technology and Public Intervention," FEP Working Papers 378, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:378
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; technological change; environment;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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