1. Endogenous growth effects of environmental policies
- Author
-
Afonso Oscar and Afonso Ana Catarina
- Subjects
(un)clean sector ,environmental policies ,environmental conscientiousness ,growth ,wages ,Economic theory. Demography ,HB1-3840 - 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.
- Published
- 2015
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