E-ISSN 2791-9439 | ISSN 1300-1868
 

Original Article 


A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model

wei-bin zhang.

Abstract
The purpose of this study is to deal with a dynamic interdependence between regional economic growth and endogenous environment change. We build a model with any number of regions with wealth and pollutant accumulation over time. The model is based on a two-regional growth model by Zhang (1996) and a multi-country growth model with endogenous environment by Zhang (2014). Wealth accumulation and pollutant changes are endogenous. Amenity is endogenous in the sense that regional amenity are functions of the population and level of pollutants. The economy is built under assumptions of profit maximization, utility maximization, and perfect competition. We describe the dynamics of region national economy with differential equations. We simulated the model with a 3-region model and demonstrated the existence of a stable equilibrium point. Our comparative dynamic analysis provides some important insights.

Key words: multi-region growth; amenity; pollutant accumulation; environmental policy; wealth accumulation. JEL Classification: R11, O18



Solow Büyüme Modeli Genişletilerek Bir Bölgesel Çevre Değişimi ve Ekonomik Büyüme Çalışması

Ozet
Bu çalışmanın amacı bölgesel iktisadi büyüme ile içsel çevre değişikliği arasındaki dinamik karşılıklı bağımlılığı ele almaktır. Zaman içinde kirletici ve servet birikimi içeren birçok bölgeden oluşan bir model oluşturulmuştur. Bu model, Zhang (1996)'nın 2 bölgeli modeline ve Zhang (2014)'ün içsel çevresel büyüme içeren çoklu-ülke büyüme modeline dayanmaktadır. Servet birikimi ve kirletici değişimleri içseldir. Model kar ve fayda maksimizasyonları ile tam rekabet varsayımları altında kurulmuştur. Çalışmada J bölgesinin ulusal ekonomi içindeki dinamikleri 2J+2 diferansiyel denklemle tanımlanmaktadır. 3-bölge ile çalışan model simüle edilmiştir ve istikrarlı bir dengenin varlığı gösterilmiştir. Karşılaştırmalı dinamik analiz önemli noktalara işaret etmektedir.

Anahtar Kelimeler: çok-bölgeli büyüme, kirletici birikimi, çevresel politika, servet birikimi. JEL Sınıflaması: R11, O18


 
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How to Cite this Article
Pubmed Style

wei-bin zhang. A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. Ekonomik Yaklasim. 2016; 27(98): 223-254. doi:10.5455/ey.35931


Web Style

wei-bin zhang. A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. https://www.ekonomikyaklasim.org/?mno=169843 [Access: April 10, 2023]. doi:10.5455/ey.35931


AMA (American Medical Association) Style

wei-bin zhang. A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. Ekonomik Yaklasim. 2016; 27(98): 223-254. doi:10.5455/ey.35931



Vancouver/ICMJE Style

wei-bin zhang. A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. Ekonomik Yaklasim. (2016), [cited April 10, 2023]; 27(98): 223-254. doi:10.5455/ey.35931



Harvard Style

wei-bin zhang (2016) A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. Ekonomik Yaklasim, 27 (98), 223-254. doi:10.5455/ey.35931



Turabian Style

wei-bin zhang. 2016. A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. Ekonomik Yaklasim, 27 (98), 223-254. doi:10.5455/ey.35931



Chicago Style

wei-bin zhang. "A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model." Ekonomik Yaklasim 27 (2016), 223-254. doi:10.5455/ey.35931



MLA (The Modern Language Association) Style

wei-bin zhang. "A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model." Ekonomik Yaklasim 27.98 (2016), 223-254. Print. doi:10.5455/ey.35931



APA (American Psychological Association) Style

wei-bin zhang (2016) A Study of Regional Environmental Change and Economic Growth by Extending Solow’s Growth Model. Ekonomik Yaklasim, 27 (98), 223-254. doi:10.5455/ey.35931





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