Since pollution abatement activities require the consumption of resource, they can be seen as an exchange of resource for clean environment. In perspective of finite resource supply and sustainable development, a model is presented to analyze the effect of various exogenous parameters such as the resource stock level, technical progress, and market demand, etc. on the optimal point. The results reveal that (1) the society with less resource stock must take some other measures such as technology innovation to increase its production level and improve its environment, (2) the increase in production is limited by technological progress, and (3) the increase in market demand leads to the increase in production, but also make environmental quality worse.
Journal of statistics & management system 3(1), pp.15-27