endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative … externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and … reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more …

patent markets, knowledge spillovers are already internalized to a huge extent. For the output-induced pollution … welfare. However, for the capital-induced pollution specification, internalizing the knowledge spillovers goes hand in hand …