ENERGY RESTRAINT,TECHNOLOGICAL PROGRESS AND SUSTAINABLE DEVELOPMENT: AN ENDOGENOUS GROWTH MODEL BASED ON THE PROMOTION OF INTERMEDIATE PRODUCTS' QUALITY

By developing the method of vertical innovation,this paper constructs a four-sector endogenous growth model with the restraint of energy depletion to study the mechanism with which the energy resource depletion and RD affect the long-run economic growth.The authors solve the social optimum equilibrium of this economic system and discuss the conditions for the existence of balanced growth path,and perform some comparative static analysis to examine the BGP of in what degree the variables and parameters' changes will affect the long-term output growth rate and the energy consumption growth rate.Finally,we draw conclusions and put forward relevant policy recommendations.