The Endogenous Growth Model Based on R&D and Environmental Quality

Endogenous economic growth model which takes into consideration R&D technological progress，resource depletion and environmental quality can more accurately interpret changes of economy， resource and environment. The paper constructed a maximization function of the utility of consumption and an optimal control model with products， environmental quality and R&D technology as constraints. Then it analyzed the dynamic conditions of each variable under static process，and carried out comparative static study of variable paths under conditions of parameter changes. Finally， it further validated the results of the analysis with numerical simulation. The result shows that steady state can appear with the R&D output increasing or decreasing， while the growth rate of environmental quality and resource exploitation are increased or decreased with the returns of R&D technology when some parameters change， which means environment and resources are influenced by the return scales of R&D technology.