The article utilises a model of endogenous growth with vertical innovation (á la Aghion–Howitt) to examine how the inclusion of a production-related pollution externality affects the prospect for long-run growth of a closed economy. It is derived that the social optimum exhibits the...

The existing body of literature underscores the crucial role of technology, driven by both innovation and imitation, in fostering economic growth. Human capital emerges as a key factor influencing technology adoption and innovation.We consider a R&D-based growth model to analyze how improvement...