Title: R&D, human capital and environmental externality in an endogenous growth model

Authors: Daisuke Ikazaki

Addresses: Faculty of Economics, Kumamoto Gakuen University, 2-5-1, Oe, Kumamoto, 862-8680, Japan

Abstract: This study constructs an endogenous growth model that incorporates the R&D sector, the education sector, and environmental problems. First, environmental impacts are considered. We show that, if government exercises appropriate policies and some parameter restrictions are satisfied, then the per-capita growth rate will become positive in the long run without environmental harm. Secondly, problems related to scale effects are considered. In typical growth models, an economy with a larger population grows faster. However, the scale effect has been rejected by Jones (1995). Our results suggest that the population level does not affect the economic growth rate.

Keywords: sustainable growth; environmental Kuznets curve; EKC; R&D; research and development; human capital; scale effect; economic growth; endogenous growth; education sector; environmental problems; environmental impact; government policy; environmental policy; population level; growth rate; sustainable development; sustainability.

DOI: 10.1504/IJGENVI.2006.009399

International Journal of Global Environmental Issues, 2006 Vol.6 No.1, pp.29 - 46

Published online: 28 Mar 2006 *

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