Acemoglu, Daron; Aghion, Philippe; Bursztyn, Leonardo; … - In: American Economic Review 102 (2012) 1, pp. 131-66
This paper introduces endogenous and directed technical change in a growth model with environmental constraints. The final good is produced from "dirty" and "clean" inputs. We show that: (i) when inputs are sufficiently substitutable, sustainable growth can be achieved with temporary...