Uniqueness and Indeterminacy of Equilibria in a Model with Polluting Emissions
Data
01.01.2006
01.01.2006
Autori
Giovanni Bella
Codice JEL
O41,Q01,Q32
O41,Q01,Q32
Parole chiave:
Environmental quality,Endogenous economic growth
Environmental quality,Endogenous economic growth
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
Is pollution a dirty word? To answer this question we develop an endogenous growth model à la Rebelo (1991) where dirtiness becomes a fundamental choice variable for the economy to grow. Conclusions to our analysis say that a positive sustainable economic growth is attainable only if polluting production activities are taken into account. Moreover, transitional dynamics points out that local stability and uniqueness of equilibria are also achieved.