Nonrenewable Resources,CO₂ Emission and Sustainable Development

Based on Romer model, the paper develops an endogenous growth model with the restrains of pollution and nonrenewable resources by introducing environmental quality into utility function, pollution into production function. Then it uses dynamic optimization methods to calculate the results and gets the optimal balanced growth path and also the condition of sustainable development. The results show that high efficiency of R&D, adequate human capital, strict environmental standards and high technical cleanliness can help overcome problems of resources and environment, thus the sustainable development can be achieved.