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Robust green Schumpeterian endogenous growth model and spatial Kuznets curve

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  • Zhou, Yuwen
  • Tian, Lixin
  • Yang, Xiaoguang
  • Wan, Bingyue

Abstract

This paper examines the green Schumpeterian endogenous growth model is robust. The principal findings of this paper can be summarized as follows. Firstly, diverging from the knife-edge condition typical in endogenous growth theory, the study reveals that the green Schumpeterian model exhibits dual knife-edge conditions. However, the dual knife-edge conditions are not necessary conditions for the emergence of green endogenous growth within the framework of the green Schumpeterian endogenous growth theory, showcasing the model is robust. Secondly, when the elasticity coefficients of quality innovation level and green innovation level exceed 1, the inverted U-shaped relationship between pollution emissions and green innovation level, as well as output level, persists. Thirdly, pollution emissions exhibit an inverted U-shaped trend with the reduction in the green premium. The higher the elasticity coefficients of quality innovation level and green innovation level, the greater the requirement for the green premium to reach the turning point of this curve. Lastly, reducing the green premium contributes to driving economic growth during the green innovation stage. As the elasticity coefficients of quality innovation level and green innovation level increase, the impact of reducing the green premium on promoting economic growth becomes more pronounced.

Suggested Citation

  • Zhou, Yuwen & Tian, Lixin & Yang, Xiaoguang & Wan, Bingyue, 2024. "Robust green Schumpeterian endogenous growth model and spatial Kuznets curve," Energy Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002287
    DOI: 10.1016/j.eneco.2024.107520
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