Long-run Sustainability in the Green Solow Model

María Guilló and Manuela Magalhães

No 18-2, QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory

Abstract: The aim is to advance in the analytical framework of green growth and to shed light on the concept of long run sustainability. We extend the Green Solow model by including a land-capital input and land degradation as a by-product of economic activity. In this framework, the effectiveness of technological progress in abatement depends on the degree of environmental stress, measured as the excess of output growth over land-capital growth. We build land-capital data at the country level using the Enhanced Vegetation Index and calibrate the model for the USA economy. In addition, we estimate the growth equation of per capita CO2 emissions over the period 2000-2011. We find convergence at the global level, statistical significance of the environmental stress parameter and a negative effect of land-capital investment on the growth rate of emissions, implying that in the long run the positive environmental effect is stronger than the production effect.

Keywords: Green-Solow; Enhanced Vegetation Index; convergence; CO2 emissions (search for similar items in EconPapers)
JEL-codes: O10 O13 O40 O44 P16 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2018-06-05
New Economics Papers: this item is included in nep-env, nep-gro and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://web.ua.es/es/dmcte/documentos/qmetwp1802.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:qmetal:2018_002

Access Statistics for this paper

More papers in QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Julio Carmona ().