Labor Supply And Growth Effects Of Environmental Policy Under Technological Risk
AbstractThis paper analyzes the effects of technological risk on long-run growth when labor supply is elastic and production gives rise to a pollution externality. We show that the randomness of production, as well as the endogeneity of labor supply, affects the equilibrium solutions for the social planner and for the market economy. We analyze the effects of environmental policy, discuss conditions for an optimal policy, and find that the response of labor supply to changes in the model parameters and to variations in the policy instruments crucially depends on the volatility of output.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal Macroeconomic Dynamics.
Volume (Year): 15 (2011)
Issue (Month): 01 (February)
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Other versions of this item:
- Clemens, Christiane & Pittel, Karen, 2011. "Labor supply and growth effects of environmental policy under technological risk," Munich Reprints in Economics 20076, University of Munich, Department of Economics.
- Christiane Clemens & Karen Pittel, 2008. "Labor Supply and Growth Effects of Environmental Policy under Technological Risk," FEMM Working Papers 08009, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- D9 - Microeconomics - - Intertemporal Choice
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- Dimitrios Varvarigos, 2013. "Economic Growth, Health, and the Choice of Polluting Technologies: The Role of Bureaucratic Corruption," Discussion Papers in Economics 13/22, Department of Economics, University of Leicester.
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