| Abstract: | Summary In this paper it has been examined under what conditions the increasing costs of pollution will put a limit to the growth
of output in a growing economy. On the assumption of a certain type of aggregate production function, labour- and land-augmenting
technical progress and pollution costs progressively increasing with the stock of capital, the analysis led to the conclusion
that only under very restrictive conditions economic development will not peter out in secular stagnation or semistagnation.
Only if the rate of land-augmenting technical progress is sufficiently high with respect to the growth rates of capital and
effective labour pollution costs will not be a barrier to economic growth.
We thank Mr. A. F. Gerritsma, Roden, for drawing the figures. |
