Johnny Ch Lok

The Relationship Between Environment Pollution and Economic Recession Johnny Ch Lok

Some economists assume that the country's property number development whether is increased or decreased, it has none any relationship to considering environmental resources are used more or less as environment pollution. They believe that the supply of environmental resources is determined by marginal productivity of resources by average productivity of resource. They assume that the relationship between environment and growth of the economy won't have direct relationship in construction industry, due to when the country's environment's environment whether it is polluted, but it will not influence the country's property buyer's property purchase desires or needed to be increased or decreased. So, when country's natural resource, such as woods ( factor of production) are used to manufacture any houses, it will not influence the country's fresh air or clean water to be polluted. So, the country's property sale number whether is more or less, it won't have relationship to its natural environment whether it is polluted more or less, but it only has little relationship to its unemployment number because when it will influence property buyers' property purchase desires may be decreased if the country has many people are unemployed in the year. So, it seems that environment pollution ought not have relationship to economic growth relationship in construction industry, such as natural resource (woods) are used to manufacture houses in some countries. Can raising factor of production impact environment pollution when economic growth occurs?I shall attempt to use endogenous economic growth models to explain this question. Endogenous economic growth models are usually a consequence of constant or increasing returns to scale of production factor or few of them. Many economists believe that all are exploring the links between sustainable per capita growth of economies and technological advancement which have direct relationship. Main features of endogenous models are the internal origination of technological change, increasing returns to human and physical capitals. They are mainly a consequence of external effects such as learning-by-doing and monopolistic competition of new designs.