Optimal dynamic scale and structure of a multi-pollution economy
- We analyze the optimal dynamic scale and structure of a two-sectoreconomy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at di_erent rates to stocks which damage the natural environment. This acts as a dynamic driving force for the economy. Our analysis shows that along the optimal time-path (i) the overall scale of economic activity may be less than maximal; (ii) the time scale of economic dynamics (change of scale and structure) is mainly determined by the lifetime of pollutants, their harmfulness and the discount rate; and (iii) the optimal control of economic scale and structure may be non-monotonic. These results raise important questions about the optimal design of environmental policies.
Verfasserangaben: | Stefan BaumgärtnerORCiDGND, Frank Jöst, Ralph Winkler |
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URL: | https://pub-data.leuphana.de/frontdoor/index/index/docId/508 |
Dokumentart: | Research Paper |
Sprache: | Englisch |
Erscheinungsjahr: | 2007 |
Datum der Veröffentlichung (online): | 20.08.2007 |
Datum der Freischaltung: | 20.08.2007 |
Freies Schlagwort / Tag: | dynamic economy-environment interaction; multi-pollutant emissions; non-monotonic control; optimal scale; stock pollution |
GND-Schlagwort: | Ökonomie <Begriff>; Ökologie; Emission; Wertpapieremission |
Fakultät / Forschungszentrum: | Universität / Frühere Fachbereiche |
DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |