Optimal dynamic scale and structure of a multi-pollution economy

Arbeitspapier

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.- Ökonomie , Ökologie , Emission , Wertpapieremission, dynamic economy-environment interaction , multi-pollutant emissions , non-monotonic control , optimal scale , stock pollution

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper Series in Economics ; No. 50

Classification and Topics

• Classification: Wirtschaft ; Renewable Resources and Conservation: General ; Economic Development: General ; One, Two, and Multisector Growth Models
• Subject: Umweltökonomik ; Mehr-Sektoren-Modell ; Umweltbelastung ; Skalenertrag ; Intertemporale Allokation ; Umweltpolitik ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Baumgärtner, Stefan ; Jöst, Frank ; Winkler, Ralph
• Event: Veröffentlichung
• (who): Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
• (where): Lüneburg
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/28168
• Last update: 10.03.2025, 11:43 AM CET