Stochastic Pollution and Environmental Care in an Endogenous Growth Model
AbstractThe impact of pollution and abatement policy within a stochastic endogenous growth model is analyzed. Environmental care is provided by the government and financed through income taxation and government bonds. Due to environmental preferences and partial perception of the individual's impact on pollution, government debt influences equilibrium growth. Hence, there is an additional growth effect of income taxation due to portfolio adjustment. It is shown that the optimal income tax rate decreases with the perception of the influence of individuals on aggregate capital. In contrast, the impact of environmental preferences and uncertainty on optimal environmental policy is ambiguous. Copyright Blackwell Publishing Ltd and The Victoria University of Manchester, 2003.
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Bibliographic InfoArticle provided by University of Manchester in its journal The Manchester School.
Volume (Year): 71 (2003)
Issue (Month): 4 (07)
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Other versions of this item:
- Susanne Soretz, 2002. "Stochastic Pollution and Environmental Care in an Endogenous Growth Model," Computing in Economics and Finance 2002 74, Society for Computational Economics.
- Soretz, Susanne, 2002. "Stochastic Pollution and Environmental Care in an Endogenous Growth Model," Diskussionspapiere der Wirtschaftswissenschaftlichen FakultÃ¤t der Leibniz UniversitÃ¤t Hannover dp-259, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- D9 - Microeconomics - - Intertemporal Choice
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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