Endogenous Growth Model Adding Environmental Variable And Environmental Kuznets Curve

Although China's economy have experienced a two-decade period of steady high growth rate, the trade-off relationship between economic growth and the environmental pressure has brought anew thinking about the sustainable economic development in our country. The Environment Kuznets Curve which obtained from the empirical study is the focus in the reaserch of the relationship between environment and economic growth in the present.The Environmental Kuznets Curve (EKC) hypothesis postulates an inverted-U-shaped relationship between different pollutants and per capita income,i.e, environmental pressure increases up to a certain level as income goes up; after that,it decreases.It is the basis and fixed quantity tools in the study of the coordinative relationgship between economic growth and environment. But this curve has much dispute for lacking of adequate theoretical support.This paper try to expand the classic endogenous economic growth model: Ramsey-Cass-Koopmans model,add the environmental stocks factor which represent the environmental quality to it.We study the optimal path of consume,capital stocks and environmental stocks. In the one economic representative model,i.e. the economy contain only one economic activist,this person is both producer and consumer. We obtain the the optimal path of consume,capital stocks and environmental stocks and prove the existence of EKC,making further research of the model with CES-shaped utility function.The main results following:First,we obtain the common dynamic path of consume,capital stocks ,environmental stocks in the model.Second,on the basis of giving the CES-shaped utility function,AK-shaped upgrade environment function,Douglas-shaped product function,we prove the existence and stability of the steady state. So we can prove that their is a optimal path which converge to the equilibrium state.Third,only when the initial environmental stocks in the optimal path,the capital stocks and environmental stocks can converge to the steady state along the optimal path.We analyze the transitional dynamics ofcapital stocks and environmental stocks,obtaining the...