Economic Growth and the Environment: A Review of Theory and Empirics
79 Pages Posted: 10 Nov 2004 Last revised: 29 Aug 2022
Date Written: October 2004
Abstract
This paper reviews both theory and empirical work on economic growth and the environment. We develop four simple growth models to help us identify key features generating sustainable growth. We show how some combination of technological progress in abatement, intensified abatement, shifts in the composition of national output and induced innovation are necessary for sustainable growth, and then demonstrate how growth models employing any one of these mechanisms generate other potentially refutable predictions on abatement costs, pollution levels, or emission intensities.
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