Title: Endogenous growth and recycling : a material balance approach
Authors : Pittel, Karen
Amigues, Jean-Pierre
Kuhn, Thomas
Extent : 33
Publisher / Ed. Institution : ETH Zürich
Publisher / Ed. Institution: Zürich
Issue Date: 2005
License (according to publishing contract) : Licence according to publishing contract
Series : Economics Working Paper Series
Series volume: 5(37)
Language : English
Subject (DDC) : 363: Environmental and security problems
Abstract: In this paper we analyze the importance of recycling in the strive for sustainable development. In contrast to former approaches we emphasize the role of the waste stock as a source of valuable inputs. We enhance a Romer (1990) type endogenous growth model by a material balance condition that reflects the circulation of matter in the economy. Differentiated intermediate products are produced from recycled waste and virgin resources. These material intermediates are then employed in the production of final output. They either end up as waste after consumption or are bound in the capital stock depending on the utilization of the produced output. We show that, even in the absence of environmental policy, long-run development is sustainable in this economy. The intuition is, that, as waste is a valuable resource in our model, not recycling part of it, cannot be optimal in the long-run.
Departement: School of Management and Law
Organisational Unit: Center for Economic Policy (FWP)
Publication type: Working paper – expertise – study
DOI : 10.3929/ethz-a-004933368
URI: https://digitalcollection.zhaw.ch/handle/11475/15026
Appears in Collections:Publikationen School of Management and Law

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