The Spirit Of Capitalism,environmental Quality And Economic Growth

This article explores the two economic models—economic growth models of environmental quality and endogenous growth models considering the spirit of capitalism. The main arrangements for this paper are:The third chapter discusses the economic model of the environmental quality,adding environmental quality to the utility function instead of the environment. Without considering technology and human capital accumulation, the model analysis the relationship between environmental quality and economic growth, and the impact which various parameters have on the environment and economic growth. The forth chapter is about the endogenous economic model, under the spirit of capitalism. To solve the problem, we use a model of public expenditure with the government .In this model, the capital is added into the utility function. By equilibrium analysis, the government obtains the value of the relationship between degree of capital accumulation and economic growth and consumption capital ratio, as well as some results of other important parameters. The fifth chapter is based on a model with the capital added into the utility function, using the welfare effects of government spending economic model to analyze the problem and similar conclusions obtained. The last chapter sums up and points out the possibility and development of the above models which need to improve.