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