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The Direction of Technical Change, Urban Land Size and Environment Quality
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TitleThe Direction of Technical Change, Urban Land Size and Environment Quality  
AuthorDong Zhiqing, Cai Xiao, and Wang Linhui  
OrganizationJilin University;School of Economics, Northeast Normal University;; 
Key WordsDirected Technical Change; Urban Land Size; Environmental Quality 
AbstractThe literature focuses on the effect of technology on the environment, while, they pay little attention to the effect of the direction of technology. This paper introduces the direction of technical change and environment quality to the two-sector model, and discusses the effect of directed technical change and the variation of urban and rural lands on the environmental quality, and measures the level of the effect on environmental quality using numerical simulation. It shows that the improvement of environmental quality can be achieved through innovation of clear technology, however, and the enterprise is more willing to invest on the dirty technology, and the direction of technology depends on the relative profit between clean and dirty sectors. Research subsidy and taxes can influence the direction of technology innovation, but the changing extent is subject to the successful rate of R&D, technology level and policies. The results of numerical simulation show that under different directions of technology change, the environmental quality, urban land size and economic output could not do grow coordinately. There is crowding out effect of environmental quality on urban lands and economic output in the current path of technology change. Only through improving clean technology innovations, environmental quality, and economic growth develop coordinately. 
Serial NumberWP586 
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