PubData Leuphana Repository: Optimal dynamic scale and structure of a multi-pollution economy

Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1257

Resource type	Working Paper
Title(s)	Optimal dynamic scale and structure of a multi-pollution economy
DOI	10.48548/pubdata-1257
Handle	20.500.14123/1320
Creator	Baumgärtner, Stefan 0000-0001-8314-8462 121846857 Jöst, Frank Winkler, Ralph
Abstract	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.
Language	English
Keywords	Emission; Control; Stock Pollution; Ökonomie; Ökologie; Emission; Wertpapieremission
Year of publication in PubData	2007
Publishing type	First publication
Publication version	Published version
Date issued	2007-08-20
Creation context	Research
Published by	Medien- und Informationszentrum, Leuphana Universität Lüneburg
Related resources	Relations of this publication Relations of this publication