Environmental quality; Sustainable economic development; Vintage capital model
Abstract :
[en] The relationship between growth and pollution is studied through a vintage capital model, where new technologies are more environmentally friendly. We find that once the optimal scrapping age of technologies is reached, an economy may achieve two possible cases of sustainable development, one in which pollution falls and another in which it stabilizes, or a catastrophic outcome, where environmental quality reaches its lower bound. The outcome will depend on countries’ investment path and their propensity to innovate in environmentally clean technologies, both of which are likely to differ across economies. Empirical results using long time series for a number of developed and developing countries indeed confirm heterogenous experiences in the pollution-output relationship.
Disciplines :
Quantitative methods in economics & management
Identifiers :
UNILU:UL-ARTICLE-2012-263
Author, co-author :
Bertinelli, Luisito ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Strobl, Eric; Ecole Polytechnique, Paris
Zou, Benteng ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
External co-authors :
yes
Language :
English
Title :
Polluting Technologies and Sustainable Economic Development
Publication date :
2010
Journal title :
International Journal of Global Environmental Issues