A Kind of Endogenous Growth Model Considering the Restraints of Nonrenewable Resources and Environment Pollution

Abstract

Aghion and Howitt have respectively discussed the models of introducing the restraints of environment pollution and nonrenewable resources under the framework of Vertical Product Innovation. In this article, the authors try to introduce both the restraints of environment pollution and nonrenewable resources into Vertical Product Innovation model simultaneously. The basic conclusions of the model in this article are as follows. Firstly, technical innovation serves as the sources of economic growth and sustainable development; secondly, comparing with the restraints of nonrenewable resources, environment pollution affects economic growth and sustainable development to a greater extent; Lastly, the model proposed in this paper is of wide use, which can contain the basic ideas and conclusions of environmental problems models under the framework of Horizontal Product Innovation and Human Capital.