diVita, Giuseppe: Technological Change, Growth and Waste Recycling
World Conference Econometric Society, 2000, Seattle

Giuseppe diVita, Universita Degli Studi - Catania
Technological Change, Growth and Waste Recycling
Session: C-4-4  Saturday 12 August 2000  by diVita, Giuseppe
This paper presents a model of endogenous growth with an exhaustible resource, in which waste recycling increases the growth rate of total input. We show that technological change plays a central role in increasing the quantity of secondary materials produced.
In our model a double endogenous effect emerges: (i) a direct one through technological progress; (ii) an indirect one, by means of the discovery of the new techniques of waste recycling. One of the main findings is that the policy maker can increase the growth rate of the economy by promoting research activity.
Moreover, we demonstrate that total welfare increases, as a consequence of waste recycling, in industrialized countries and developing ones, but the production costs of secondary materials are lesser in the latter. Finally, the principal results of our analytical framework are consistent with the empirical evidence.

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