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Dirty versus ecological technology in an endogenous growth model

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  • Mónica Meireles
  • Isabel Soares
  • Oscar Afonso

Abstract

An endogenous growth model with renewable and nonrenewable Intermediate Goods (IGs) is developed to study the exogenous environmental quality effects on technological-knowledge bias and on Final-Good (FG) sector bias. Solving the transitional dynamics numerically and removing the scale effects, FG sector bias is showed to be caused by both technological-knowledge bias, through the price channel, and technological-knowledge-absorption effect.

Suggested Citation

  • Mónica Meireles & Isabel Soares & Oscar Afonso, 2012. "Dirty versus ecological technology in an endogenous growth model," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 729-733, May.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:8:p:729-733
    DOI: 10.1080/13504851.2011.597718
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    References listed on IDEAS

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    1. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 563-606.
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