Analysis of Relationship Between Sustainable Economic Growth and Environmental Quality

摘要

This paper examines the relationship between environmental quality and growth, from the perspective of endogenous growth theory. In particular, to clarify this relationship, variety expansion model with environmental quality is developed here. We incorporate environmental quality comprising the activity as for the final goods sector giving damages to environment and the activity preserving environment into the model which has been developed in Grossman and Helpman(1991) and Jones(1995), and study the influence which environmental quality and R & D activity give to the endogenous economic growth. Prom this paper it is found that; the economic growth rates at the stead state are sustainable, second, at the steady state, if the more is the externality of environmental quality, the more is the growth rate of the social planner than one in the decentralized economy, third, indeterminacy may occur for transitional dynamics in the social planner, and fourth, the tax rate which government levies to realize the economic growth rate of the social planner in the decentralized economy is derived.