Green Growth : Lessons from Growth Theory

This paper reviews dynamic general
equilibrium models in order to collect insights on the
interaction between economic growth and environmental
issues. The authors discuss the Ramsey model and extend it
for natural resource inputs and pollution, as well as for
endogenous technical change. Green growth becomes within
reach if there is good substitution, a clean backstop
technology, a small share of natural resources in gross
domestic product, and/or green directed technical change.