Endogenous Growth Effects of Environmental Policies

Oscar Afonso () and Ana Catarina Afonso ()

Panoeconomicus, 2015, vol. 62, issue 5, 607-629

Abstract: To analyse the impact of the environmental policies, we start by reviewing the literature on the environment, technological knowledge and economic growth. Then, we build a general equilibrium endogenous growth model where final goods are produced either in the skilled-labour intensive Clean sector or in the unskilled-labour intensive Unclean sector. By solving numerically transitional dynamics towards the unique and stable steady state, we observe that environmental policies encourage scale-invariant technological-knowledge bias. This, in turn, promotes environmental quality, the skill premium and economic growth. Moreover, the impact of population growth on the steady-state growth rate is higher under strong households’ environmental conscientiousness with future generations. Key words: (Un)Clean sector, Environmental policies, Environmental conscientiousness, Growth, Wages.JEL: C63, J31, O13, O31, Q55, Q58.

Keywords: (Un)Clean sector; Environmental policies; Environmental conscientiousness; Growth; Wages (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://panoeconomicus.org/index.php/jorunal/article/view/65/60 (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:voj:journl:v:62:y:2015:i:5:p:607-629:id:65

Access Statistics for this article

Panoeconomicus is currently edited by Kosta Josifidis

More articles in Panoeconomicus from Savez ekonomista Vojvodine, Novi Sad, Serbia
Bibliographic data for series maintained by Savez ekonomista Vojvodine, Novi Sad, Serbia ().