A Knife-Edge Property of Some Pollution-and-Growth Models
2008 (English)Conference paper (Refereed)
In some recent economic growth models there can be decreasing pollution along with increasing per capita income, if the rate of improvement in the environmenta ltechnology is suﬃciently high. A central function describes how gross pollution and environmental technology interact to determine net pollution, which in the previous works has a log-linear form. This letter provides an example in which this function is generalized to a CES type. The result is that the environmental technology factor in the long run may be either implausibly potent or almost ineﬀective in transforming a high gross pollution to a low net pollution if the function deviates from the log-linearcase.
Place, publisher, year, edition, pages
Pollution and growth, Directed technological change
Research subject Industrial Economics and Organisations
IdentifiersURN: urn:nbn:se:mdh:diva-23138OAI: oai:DiVA.org:mdh-23138DiVA: diva2:674249
Monte Verità Conference on Sustainable Resource Use and Economic Dynamics - SURED 2008, Ascona, Switzerland June 2-5, 2008