Pollution-Income Dynamics

This paper shows that the dynamic properties of the pollution-income relationship under an optimal pollution tax depends on three key factors, namely the degree of temporal and inter-temporal flexibility in consumption and the elasticity of substitution among production inputs. This paper derives general conditions for eluding the limits to growth showing that they require rather stringent assumptions which the existing literature has failed to identify.


Issue Date:
2014-02
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/166072
Total Pages:
12
JEL Codes:
O1; Q2
Series Statement:
Working Paper
14-02




 Record created 2017-04-01, last modified 2017-08-27

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