Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171481
Authors: 
Pittel, Karen
Amigues, Jean-Pierre
Kuhn, Thomas
Year of Publication: 
2005
Series/Report no.: 
Economics Working Paper Series 05/37
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 re°ects the circulation of matter in the economy. Di®erentiated intermediate products are produced from recycled waste and virgin resources. These material intermediates are then employed in the production of ¯nal 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.
Subjects: 
non-renewable resources
recycling
endogenous growth
sustainable development
JEL: 
O41
Q01
Q3
Q53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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