Green Growth : Lessons from Growth Theory

This paper reviews dynamic general equilibrium models in order to collect insights on the interaction between economic growth and environmental issues. The authors discuss the Ramsey model and extend it for natural resource inputs and pollution, as...

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Bibliographic Details
Main Authors:	Withagen, Cees, Smulders, Sjak
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ABATEMENT COST ADVERSE EFFECTS AGGREGATE LEVEL AGRICULTURE ALLOCATION ALTERNATIVE ENERGY ATMOSPHERE BENCHMARK CALCULATION CAPITAL FORMATION CAPITAL STOCKS CARBON CARBON CAPTURE CARBON CYCLE CARBON FOSSIL FUELS CARBON LEAKAGE CARBON TAX CARTEL CETERIS PARIBUS CLIMATE CLIMATE CHANGE CLIMATE CHANGE POLICIES CLIMATE DAMAGES CLIMATE POLICY CO CO2 COAL CONSTANT RETURNS TO SCALE CONSUMERS CONSUMPTION LEVELS COST OF CARBON COST-BENEFIT CROWDING OUT DAMAGE FUNCTION DAMAGES DEMAND FOR ENERGY DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFUSION DIMINISHING RETURNS DIRECT ABATEMENT DISCOUNT RATE DYNAMIC MODEL ECOLOGICAL ECONOMICS ECOLOGY ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DYNAMICS ECONOMIC GROWTH ECONOMIC IMPLICATIONS ECONOMIC INCENTIVES ECONOMIC SECTORS ECONOMIC THEORY ECONOMICS ECONOMICS OF CLIMATE CHANGE ECONOMISTS ECOSYSTEM EFFICIENCY IMPROVEMENTS ELASTICITY ELECTRICITY ELECTRICITY PLANTS EMISSION EMISSION CUTS EMISSION REDUCTION EMISSION REDUCTION POLICIES EMISSION TAX EMISSION TAXES EMISSIONS EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENERGY ECONOMICS ENERGY EFFICIENCY ENERGY POLICY ENERGY PRICES ENERGY PRODUCTION ENERGY SOURCES ENERGY USE ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL ISSUES ENVIRONMENTAL KUZNETS ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL QUALITY ENVIRONMENTAL TAX ENVIRONMENTAL TAX REFORM ENVIRONMENTAL TAXES ENVIRONMENTS EQUILIBRIUM EXCHANGE RATE EXPENDITURES EXPLOITATION EXTERNALITIES FINANCIAL MARKETS FISH FISH STOCK FISHERIES FIXED COSTS FOREST FORESTS FOSSIL FUEL FOSSIL FUELS FUTURE CONSUMPTION GAS GDP GLOBAL CLIMATE CHANGE GLOBAL WARMING GREEN ACCOUNTING GREENHOUSE GREENHOUSE GAS GREENHOUSE GAS EMISSIONS GROSS DOMESTIC PRODUCT GROWTH MODELS GROWTH OF CONSUMPTION GROWTH POLICIES GROWTH POLICY GROWTH RATE GROWTH THEORY HARMFUL EMISSIONS HUMAN CAPITAL INCOME INCOME EFFECT INCREASE IN CONSUMPTION INCREASING RETURNS INDUSTRIALIZATION INTEREST RATE INTERGENERATIONAL EQUITY LABOR FORCE LABOR PRODUCTIVITY LAISSEZ-FAIRE LAND ECONOMICS LOW-CARBON LOWER COSTS LOWER PRICES MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL PRODUCT MARGINAL PRODUCTIVITY MARGINAL PRODUCTS MARGINAL UTILITY MARKET ECONOMY MARKET FAILURES NATURAL CAPITAL NATURAL RESOURCE SCARCITY NATURAL RESOURCES NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY NEGATIVE IMPACT NEGATIVE IMPACTS O3 OIL OIL RESERVES OLIGOPOLIES OPEN ECONOMIES OPPORTUNITY COSTS PATENTS PER CAPITA CONSUMPTION PER CAPITA INCOME PH POLITICAL ECONOMY POLLUTION POLLUTION CONTROL POLLUTION TAX POLLUTION TAXES POPULATION GROWTH POSITIVE EXTERNALITIES PP PRICE OF OIL PRODUCERS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PROPERTY RIGHTS PUBLIC ECONOMICS PUBLIC GOOD PUBLIC GOODS REGENERATION CAPACITY RENEWABLE ENERGY RENEWABLE RESOURCES RESOURCE CONSERVATION RESOURCE ECONOMICS RESOURCE MANAGEMENT RESOURCE USE SAVINGS SCRUBBERS SEQUESTRATION SHADOW PRICE STOCK OF CAPITAL SUBSTITUTION SUSTAINABLE DEVELOPMENT SUSTAINABLE GROWTH TECHNOLOGICAL CHANGE TECHNOLOGICAL PROGRESS TEMPERATURE TIMBER USE OF CAPITAL UTILITY FUNCTION UTILITY FUNCTIONS WATER TREATMENT WEALTH WELFARE FUNCTION WILLINGNESS TO PAY WIND WIND ENERGY WIND POWER
Online Access:	http://documents.worldbank.org/curated/en/2012/10/16835669/green-growth-lessons-growth-theory http://hdl.handle.net/10986/12080

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Summary:	This paper reviews dynamic general equilibrium models in order to collect insights on the interaction between economic growth and environmental issues. The authors discuss the Ramsey model and extend it for natural resource inputs and pollution, as well as for endogenous technical change. Green growth becomes within reach if there is good substitution, a clean backstop technology, a small share of natural resources in gross domestic product, and/or green directed technical change.

Green Growth : Lessons from Growth Theory

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