Dirty versus ecological technology in an endogenous growth model

Mónica Meireles, Isabel Soares and Oscar Afonso

Applied Economics Letters, 2012, vol. 19, issue 8, 729-733

Abstract: An endogenous growth model with renewable and nonrenewable Intermediate Goods (IGs) is developed to study the exogenous environmental quality effects on technological-knowledge bias and on Final-Good (FG) sector bias. Solving the transitional dynamics numerically and removing the scale effects, FG sector bias is showed to be caused by both technological-knowledge bias, through the price channel, and technological-knowledge-absorption effect.

Date: 2012
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DOI: 10.1080/13504851.2011.597718

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