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Long-Run Growth and Recycling: A Material Balance Approach

Title: Long-Run Growth and Recycling: A Material Balance Approach
Authors: Eidgenössische Technische; Hochschule Zürich; Karen Pittel; Jean-pierre Amiguesy; Thomas Kuhnz; Jel-code O
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: http://www.cer.ethz.ch/research/wp_05_37.pdf.
Publication Year: 2006
Collection: CiteSeerX
Subject Terms: exhaustible resources; recycling; endogenous growth; sustainable development
Description: In this paper we analyze the implications of recycling for long-run economic devel-opment. In contrast to former approaches, we take explicit account of the circula-tion of matter in the economy. Building upon a Romer (1990) type growth model we consider virgin resources and recycled wastes as essential inputs to production. These material inputs either end up as waste after consumption or are bound in the capital stock { depending on the utilization of the produced output. As accumulat-ing wastes can be recycled and again be employed in production, the waste stock serves as a source of valuable inputs in our model. We focus on the implications of recycling-related market failures and the integration of material balances on the dynamics of the economy. It is shown that, even in the absence of environmental policy, long-run development is sustainable. Yet, optimal environmental policy can serve as a means to raise growth.
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.566.1986; http://www.cer.ethz.ch/research/wp_05_37.pdf
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.566.1986; http://www.cer.ethz.ch/research/wp_05_37.pdf
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.C4FA4372
Database: BASE