Journal of Economic Growth

, Volume 15, Issue 2, pp 127–153

The Green Solow model

Article

Abstract

We argue that a key empirical finding in environmental economics—the Environmental Kuznets Curve (EKC)—and the core model of modern macroeconomics—the Solow model—are intimately related. Once we amend the Solow model to incorporate technological progress in abatement, the EKC is a necessary by product of convergence to a sustainable growth path. We explain why current methods for estimating an EKC are likely to fail; provide an alternative empirical method directly tied to our theory; and estimate our model on carbon emissions from 173 countries over the 1960–1998 period.

Keywords

Environment Environmental Kuznets Curve Carbon emissions Solow model Sustainability Pollution 

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of WisconsinMadisonUSA
  2. 2.Department of Economics, Faculty of Social ScienceUniversity of CalgaryCalgaryCanada
  3. 3.National Bureau of Economic ResearchCambridgeUSA

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