Does improved environmental policy enhance economic growth?

Knut Einar Rosendahl

Environmental & Resource Economics, 1997, vol. 9, issue 3, 364 pages

Abstract: The environmental impacts on an economy is studied over time using endogenous growth theory. Externalities from the environment on production are central in the analysis, and we examine whether an optimal path realizes more rapid economic growth. The paper focuses mainly on developing countries, where production is largely influenced by the environmental quality. The result of the analysis indicates that the economic growth rate may not depend on the internalization of the environmental externality, but rather on the internalization of the human capital externality. The level of economic activity, however, generally seems to depend on the internalization of both externalities. Copyright Kluwer Academic Publishers 1997

Keywords: developing countries; endogenous growth; environmental externalities (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (16)

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DOI: 10.1007/BF02441404

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