This paper introduces endogenous and directed technical change in a growth model with environmental constraints. A … characterize dynamic tax policies that achieve sustainable growth or maximize intertemporal welfare. We show that: (i) in the case … where the inputs are sufficiently substitutable, sustainable long-run growth can be achieved with temporary taxation of …

This paper discusses the growth model with environmental constraints recently presented in (Acemoglu et al., 2011 … policies can be conducted "without sacrificing (much or any) long-run growth". Second, they select unrealistic key parameters …. Third, the model leads to an unrealistic conclusion when used to analyse endogenous growth, suggesting specification …