Long-term economic growth under environmental pressure: An optimal path

Feng Dai (), Pengpeng Li and Ling Liang

The Quarterly Review of Economics and Finance, 2016, vol. 59, issue C, 15-24

Abstract: This paper presents a model, based on the advance-retreat course (ARC) model (Dai, Liang, & Wu, 2013; Dai, Liu, & Liang, 2013), of long-term economic growth under environmental pressure. The model is used to explain economic convergence and divergence; construct an optimal long-term growth model for basic, emerging and real total output; derive an optimal growth accounting equation; indicate the optimal paths of long-term growth and economic structure change; analyze empirically the growth for U.S. and China. Among the findings are that emerging industries contribute significantly to real output in the long term; that economic diversification can increase real output and promote long-term growth. The paper suggests policy orientations that are needed to avoid economic collapse.

Keywords: Long-term economic growth; Environmental pressure; Optimal path; Convergence; Divergence (search for similar items in EconPapers)
JEL-codes: C53 E17 O47 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:59:y:2016:i:c:p:15-24

DOI: 10.1016/j.qref.2015.03.008

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