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Environmental pollution in a growing economy with endogenous structural change

Bondarev, Anton and Greiner, Alfred. (2017) Environmental pollution in a growing economy with endogenous structural change. WWZ Working Papers, 2017 (03).

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Official URL: https://edoc.unibas.ch/61314/

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Abstract

In this paper we study the impact of environmental pollution in an endogenous growth model that allows for structural change. The model is based on doublydifffferentiated R&D where newer, less polluting technologies gradually replace older ones. The analysis shows that the presence of environmental externalities stimulates structural change but reduces the growth rate of the economy. Further, comparing the models with and without structural change demonstrates that the latter implies stronger environmental damages and, consequently, a lower growth rate than the ffirst one. Finally, levying a tax on the polluting output speeds up structural change, thus, reducing environmental pollution and spurring economic growth. This can give new support for the double dividend hypothesis.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Umweltökonomie (Krysiak)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Bondarev, Anton A.
Item Type:Working Paper
Publisher:WWZ, University of Basel
Number of Pages:32
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2017/03
Last Modified:07 Mar 2018 13:04
Deposited On:07 Mar 2018 13:04

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