Publication type: Working paper – expertise – study
Title: Endogenous growth and recycling : a material balance approach
Authors: Pittel, Karen
Amigues, Jean-Pierre
Kuhn, Thomas
DOI: 10.3929/ethz-a-004933368
Extent: 33
Issue Date: 2005
Series: Economics Working Paper Series
Series volume: 5(37)
Publisher / Ed. Institution: ETH Zürich
Publisher / Ed. Institution: Zürich
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.
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Economic Policy (FWP)
Appears in collections:Publikationen School of Management and Law

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