 Growth Theory and “Green Growthâ€Sjak Smulders (), Michael Toman () and Cees Withagen No 135, OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford Abstract: The relatively new and still amorphous concept of “Green Growth†can be understood as a call for balancing longer-term investments in sustaining environmental wealth with nearer-term income growth to reduce poverty. We draw on a large body of economic theory available for providing insights on such balancing of income growth and environmental sustainability. We show that there is no a priori assurance of substantial positive spillovers from environmental policies to income growth, or for a monotonic transition to a “green steady state†along an optimal path. The greenness of an optimal growth path can depend heavily on initial conditions, with a variety of different adjustments occurring concurrently along an optimal path. Factor-augmenting technical change targeting at offsetting resource depletion is critical to sustaining long-term growth within natural limits on the availability of natural resources and environmental services. Keywords: growth; environment; natural resources; innovation; R&D spillovers; sustainable development; natural capital (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oxf:oxcrwp:135 Access Statistics for this paper More papers in OxCarre Working Papers from Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford Contact information at EDIRC. |
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