Maxime Menuet, Alexandru Minea, Patrick Villieu, Anastasios Xepapadeas
{"title":"Environmental quality along the process of economic growth: a theoretical reappraisal","authors":"Maxime Menuet, Alexandru Minea, Patrick Villieu, Anastasios Xepapadeas","doi":"10.1007/s00199-023-01520-1","DOIUrl":null,"url":null,"abstract":"<p>This paper studies the dual interaction between economic growth and environmental quality in an endogenous growth model. We exhibit multiple equilibria and complex local and global dynamics, resulting in potential indeterminacy, hysteresis effects, or long-lasting growth and environmental cycles. From a policy perspective, we reveal that changes in the environmental policy should be handled with care, as they may generate aggregate instability or condemn the economy to an environmental poverty trap associated with a possible irreversibility of environmental degradation. Lastly, our analysis provides a reassessment of pollution taxes, which are found to improve long-run economic growth when the model is well-determined, but reduce it in the presence of indeterminacy.\n</p>","PeriodicalId":47982,"journal":{"name":"Economic Theory","volume":"49 6","pages":""},"PeriodicalIF":1.2000,"publicationDate":"2023-11-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economic Theory","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1007/s00199-023-01520-1","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper studies the dual interaction between economic growth and environmental quality in an endogenous growth model. We exhibit multiple equilibria and complex local and global dynamics, resulting in potential indeterminacy, hysteresis effects, or long-lasting growth and environmental cycles. From a policy perspective, we reveal that changes in the environmental policy should be handled with care, as they may generate aggregate instability or condemn the economy to an environmental poverty trap associated with a possible irreversibility of environmental degradation. Lastly, our analysis provides a reassessment of pollution taxes, which are found to improve long-run economic growth when the model is well-determined, but reduce it in the presence of indeterminacy.
期刊介绍：
The purpose of Economic Theory is to provide an outlet for research - in all areas of economics based on rigorous theoretical reasoning, and
- on specific topics in mathematics which is motivated by the analysis of economic problems. Economic Theory''s scope encompasses - but is not limited to - the following fields. - classical and modern equilibrium theory
- cooperative and non-cooperative game theory
- macroeconomics
- social choice and welfare
- uncertainty and information, intertemporal economics (including dynamical systems)
- public economics
- international and developmental economics
- financial economics, money and banking
- industrial organization Economic Theory also publishes surveys if they clearly picture the basic ideas at work in some areas, the essential technical apparatus which is used and the central questions which remain open. The development of a productive dialectic between stylized facts and abstract formulations requires that economic relevance be at the forefront. Thus, correct, and innovative, mathematical analysis is not enough; it must be motivated by - and contribute to - the understanding of substantive economic problems.
Officially cited as: Econ Theory
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号
