An Empirical Time Series Model of Economic Growth and Environment

Amant J. Lal

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, I use the Solow (1956) model to examine the impact of water pollution on per worker output. I use data from New Zealand. I use an autoregressive distributed lag model that accounts for endogeneity. I also employ the Granger causality tests to examine the direction of causality between water pollution and per worker output. The findings indicates that water pollution affects the level of output per worker. This implies that a tightened pollution policy may have short-run impacts rather than the long-run.

Keywords: Solow model; water pollution; economic growth (search for similar items in EconPapers)
JEL-codes: C5 C58 E0 E01 E02 G1 G15 (search for similar items in EconPapers)
Date: 2009-03-15
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:66475

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