den Butter, F.A.G. and Hofkes, M. (1995). Sustainable Development with Extractive and Non-Extractive Use of the Environment in Production Environmental and Resource Economics, 6(4):341--358.
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Affiliated author
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Publication year1995
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JournalEnvironmental and Resource Economics
This paper considers an economy in which the environment plays a role both in welfare and production. An endogenous growth model, which allows for abatement activities, is formulated in order to study the impact of pollution on welfare and long-term growth. Conditions for optimal and balanced economic growth are discussed and a numerical example is given to provide some insight in the mechanisms at work in the model.