Abstract:

By considering the two factors affecting the economic growth, environment and energy, the relationship between economic growth, environmental quality and energy intensity was setup. The health index of people was introduced to measure environmental quality. Meanwhile, the health index was taken as a variable of the utility function. Finally, the conditions that the sustainable development of economy needed to satisfy were shown, which can maximize the utility function including two variables, consumption and health index.

Key words: environment; energy; sustainable development; endogenous growth