Nota di Lavoro, Fondazione Eni Enrico Mattei 9.2002
In this paper we consider an endogenous growth model in which, among other inputs, we consider a renewable resource and secondary materials. Using this analytical framework we explain the effects of waste recycling on the growth rate of the economy, that we take into account. The effects of secondary materials production on the utility and dynamics of renewable resources are also studied. Furthermore, we consider how the tax and subsidy, levied on natural resource and secondary materials respectively, influence the dynamics of economy during the transitional phase and the stationary growth path. Finally, the validity of Hotelling's rule and the effects of waste recycling on labor productivity are the conclusive topics of our research.