Working Paper: NBER ID: w10854
Authors: William A. Brock; M. Scott Taylor
Abstract: This paper reviews both theory and empirical work on economic growth and the environment. We develop four simple growth models to help us identify key features generating sustainable growth. We show how some combination of technological progress in abatement, intensified abatement, shifts in the composition of national output and induced innovation are necessary for sustainable growth, and then demonstrate how growth models employing any one of these mechanisms generate other potentially refutable predictions on abatement costs, pollution levels, or emission intensities.
Keywords: economic growth; environment; sustainable growth; technological progress; abatement
JEL Codes: F1; Q2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| economic growth (O49) | increased pollution levels (Q53) |
| increased pollution levels (Q53) | economic growth (O49) |
| economic growth (O49) | decline in pollution levels (Q53) |
| technological advancements in abatement (Q55) | lower emissions per unit of output (Q52) |
| technological progress in abatement (Q52) | sustainable growth (O44) |
| economic activity (E20) | environmental outcomes (Q56) |
| intensity of abatement (Q52) | pollution in check (Q53) |
| lack of technological progress in abatement (Q55) | deterioration in growth and environmental quality (O44) |
| scale, composition, and technique effects (F12) | long-term sustainability of growth (O44) |