Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108364
Authors: 
Berlinger, Edina
Lovas, Anita
Year of Publication: 
2015
Series/Report no.: 
IEHAS Discussion Papers MT-DP - 2015/1
Abstract (Translated): 
In this paper we investigate the relationship between sustainability and economic growth starting from Stern (2006) which is the first comprehensive analysis of the global warming from economic point of view. We also discuss the critical debate of this study which was focused mainly on the proper selection of the social discount rate. Then we present Acemoglu et al. (2012) which provides a generalized framework to understand the problem. In this model, called directed technical change, innovation is a key driving factor and contrary to the Stern review, it is endogenous. Interestingly, in this setting, the social discount rate becomes irrelevant. Finally, we also summarize the new developments related to the right parameter setting and the role of the state to manage the most significant negative externality of the planet.
Subjects: 
sustainability
growth
Stern review
endogenous innovation
directed technical change
negative externalities
role of state
JEL: 
G18
H23
O33
Q56
ISBN: 
978-615-5447-59-4
Document Type: 
Working Paper

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