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 different rates to stocks which damage the natural environment. This acts as a dynamic driving force for the economy. O...
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| Other Authors: | , , |
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| Format: | Book/Monograph Working Paper |
| Language: | English |
| Published: |
Lüneburg
Univ.
May 2007
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| Series: | University of Lüneburg Working paper series in economics
50 |
| In: |
University of Lüneburg Working paper series in economics (50)
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| Subjects: | |
| Online Access: | Verlag, Volltext: http://www.gbv.de/dms/lueneburg/LG/OPUS/2007/11051/pdf/wp_50_Upload.pdf Verlag, Volltext: http://www.uni-lueneburg.de/fb2/vwl/papers/wp_50_Upload.pdf Download aus dem Internet, Stand 24.07.2007, Volltext: http://hdl.handle.net/10419/28168 
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| Author Notes: | Stefan Baumgärtner; Frank Jöst; Ralph Winkler |
| Summary: | 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 different 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.- Ökonomie <Begriff> , Ökologie , Emission , Wertpapieremission, dynamic economy-environment interaction , multi-pollutant emissions , non-monotonic control , optimal scale , stock pollution |
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| Item Description: | Parallel als Druckausg. erschienen |
| Physical Description: | Online Resource |
| Format: | Systemvoraussetzungen: Acrobat Reader. |