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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 25, No. 1, pp.57-87
ISSN: 1225-0279 (Print)
Print publication date 29 Feb 2012
Received 11 Feb 2011 Revised 17 Aug 2011 Accepted 24 Aug 2011

Examining a Green Growth Model for Policy Implications

Jisoon Lee
Professor, Department of Economics, Seoul National University, San 56-1, Sillim-dong, Gwanak-gu, Seoul 151-746, Korea, Tel: +82-2-880-6476, Fax: +82-2-886-4231 jisoon@snu.ac.kr

JEL Classification: O11, Q55, Q56

Abstract

Utilizing a simple growth model that includes the energy resource as an essential input, the possibility of a cleaner environment as well as larger income is demonstrated. Growth rates need not be lowered to have a cleaner environment, and the energy output ratio may be reduced. Pollution generated as side effects makes it necessary for policy makers to come up with suitable policies. In this regard, several policy options are proposed. Pollution tax (more generally, an environment tax) and a subsidy for energy and anti-pollution (environment) related technological progresses are such examples. A judicious mix of those policies can make income larger, energy usage smaller, and pollution level lower.

Keywords:

Growth, Energy uses, Environment, Green growth, Environment (energy or green) tax, Technological progress

Acknowledgments

This research is supported by the National Research Council for Economics, Humanities, and Social Sciences. Professors Yong J. Kim, Jong S. Lim, and Sang I. Kang have provided the author with valuable comments. Valuable suggestions offered by two anonymous referees are gratefully acknowledged.

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