Environmental preference, Environmental quality and Long run growth

• Main Authors: Chih-Kai Yang, 楊智凱
• Other Authors: Yao-Nan Hsu
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/63jbg8

碩士 === 銘傳大學 === 經濟學系碩士班 === 97 === With global warming becoming more and more serious, people are becoming conscious of environmental care. Thus, this paper explores the interactions of environmental preference, environmental quality and economic growth. We uses Lucas(2002) two-sector model , introduces pollution into the utility function and productivity function, and divides capital between productive capital stock and abatement capital stock. The result of the analysis indicates that it is positive relation between environmental quality and economic growth, and a higher environmental preference will boost growth and raise the environmental quality. But a too large value of environmental preference leads the growth rate towards negative value. In the other hand, a higher elasticity of pollution with respect to productive capital stock or lower elasticity of pollution with respect to productive capital stock bolster economic growth and environmental quality under a elasticity of pollution with respect to productive capital stock bigger than a elasticity of pollution with respect to productive capital stock