| Abstract: | Our intention is to present a growth model with an environmental resource which has its own regeneration process. The stock of this resource serves as a source of utility and an input to production. We also intend to introduce a negative externality caused by a pollution flow which we assume to be proportional to production. In the context of this model, it is shown that, by using the utility level of the Green Golden Rule as a generalization of the Ramsey's bliss point for solving an optimal growth problems with a zero discount rate, an optimal path converges to the Green Golden Rule configuration. |
