This paper examines theoretically the potential positive effect of generating biomass from recycling on the quality of environment and economic growth. By taking into account the effect of environmental quality on factor productivity and representative's utility in an endogenous growth model, we found that improving the efficiency of generating biomass will not only reduce the rate of depletion of resources, but will also reduce the pollution levels, resulting in a positive growth in natural capital. The accumulation of natural capital, in turn, will improve productive efficiency, which leads to more output and an improvement in economic welfare.