Abstract
This paper is concerned with the effects of environmental conservation on economic growth. We develop a simple model economy in which final production depends on environmentally-friendly and environmentally-unfriendly inputs which are manufactured using designs created from research and development. Growth that occurs from expanding product variety can be affected by environmental policy which alters production costs. We find that the economy can become stuck with dirty technology if policy makers do not care about the environment to begin with. In most cases, pollution control is not a growth depressant. It is possible for growth to increase after previously-ignored environmental considerations are taken into account.
We would like to thank Alistair Ulph and David Ulph for helpful comments.
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© 1994 Springer Science+Business Media Dordrecht
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Victor, T.Y.H., Chang, P., Blackburn, K. (1994). Endogenous Growth, Environment and R&D. In: Carraro, C. (eds) Trade, Innovation, Environment. Fondazione Eni Enrico Mattei (FEEM) Series on Economics, Energy and Environment, vol 2. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0948-2_10
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DOI: https://doi.org/10.1007/978-94-011-0948-2_10
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