Conservation capital and sustainable economic growth
A Ramirez Rez Harrington
affiliation not provided to SSRN
Oxford Economic Papers, Vol. 57, Issue 2, pp. 336-359, 2005
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.
JEL Classification: F13; P16Accepted Paper Series
Date posted: February 29, 2008
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