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Environmental Protection And Economic Growth

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Author Info
Vladimir Kühl Teles
Ronaldo A. Arraes

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Abstract

This paper explores the link between an environmental policy and economic growth employing an extension of the Neoclassical Growth Model. We include a state equation to renewable natural resources, and consider natural resources as a component of the aggregate productivity. It is assumed that the change of the environmental regulations induces costs and that economic agents also derive some utility from stock capital accumulation vis-`a-vis environment. Using the Hopf bifurcation theorem, it can be shown that cyclical environmental policy strategies are optimal, providing a theoretical support to the Environmental Kuznets Curve.

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Paper provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its series Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] with number 044.

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Date of creation: 2004
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Handle: RePEc:anp:en2004:044

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Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
D62 - Microeconomics - - Welfare Economics - - - Externalities
C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium

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  1. Feichtinger, Gustav & Novak, Andreas & Wirl, Franz, 1994. "Limit cycles in intertemporal adjustment models : Theory and applications," Journal of Economic Dynamics and Control, Elsevier, vol. 18(2), pages 353-380, March. [Downloadable!] (restricted)
  2. Wirl, Franz, 1999. "Complex, dynamic environmental policies," Resource and Energy Economics, Elsevier, vol. 21(1), pages 19-41, January. [Downloadable!] (restricted)
  3. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
  4. Fleissig, Adrian R. & Whitney, Gerald A., 2007. "Testing additive separability," Economics Letters, Elsevier, vol. 96(2), pages 215-220, August. [Downloadable!] (restricted)
  5. Xepapadeas, Anastasios, 1997. "Economic development and environmental pollution: traps and growth," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 327-350, August. [Downloadable!] (restricted)
  6. Hazilla, Michael & Kopp, Raymond J, 1990. "Social Cost of Environmental Quality Regulations: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 853-73, August. [Downloadable!] (restricted)
  7. Engelbert Dockner & Gustav Feichtinger, 1991. "On the optimality of limit cycles in dynamic economic systems," Journal of Economics, Springer, vol. 53(1), pages 31-50, February. [Downloadable!] (restricted)
  8. Mohtadi, Hamid, 1996. "Environment, growth, and optimal policy design," Journal of Public Economics, Elsevier, vol. 63(1), pages 119-140, December. [Downloadable!] (restricted)
  9. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May. [Downloadable!] (restricted)
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  10. Reis, Ana Balcao, 2001. "Endogenous Growth and the Possibility of Eliminating Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 360-373, November. [Downloadable!] (restricted)
  11. Grossman, Gene M. & Krueger, Alan B., 1996. "The inverted-U: what does it mean?," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 119-122, February. [Downloadable!]
  12. Larry E. Jones & Rodolfo E. Manuelli, 2001. "Endogenous Policy Choice: The Case of Pollution and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 369-405, July. [Downloadable!] (restricted)
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  13. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November. [Downloadable!] (restricted)
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  15. Selvanathan, Saroja, 1987. "A Monte Carlo test of preference independence," Economics Letters, Elsevier, vol. 25(3), pages 259-261. [Downloadable!] (restricted)
  16. Wirl, Franz, 2000. "Optimal accumulation of pollution: Existence of limit cycles for the social optimum and the competitive equilibrium," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 297-306, February. [Downloadable!] (restricted)
  17. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May. [Downloadable!] (restricted)
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  18. Long, John B, Jr & Plosser, Charles I, 1983. "Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 39-69, February. [Downloadable!] (restricted)
  19. Clements, Kenneth W & Yang, Wana & Zheng, Simon W, 1997. "Is Utility Additive? The Case of Alcohol," Applied Economics, Taylor and Francis Journals, vol. 29(9), pages 1163-67, September. [Downloadable!] (restricted)
  20. Kenneth W. Clements & Wana Yang & Simon W. Zheng, 1997. "Is utility additive? The case of alcohol," Applied Economics, Taylor and Francis Journals, vol. 29(9), pages 1163-1167, September. [Downloadable!] (restricted)
  21. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March. [Downloadable!] (restricted)
  22. Serafy, Salah El & Goodland, Robert, 1996. "The importance of accurately measuring growth," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 116-119, February. [Downloadable!]
  23. Clark, Colin W., 1996. "Operational environmental policies," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 110-113, February. [Downloadable!]
  24. Selden Thomas M. & Song Daqing, 1995. "Neoclassical Growth, the J Curve for Abatement, and the Inverted U Curve for Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 162-168, September. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fábio Henrique Granja e Barros & Bernardo Mueller & Jorge Madeira Nogueira, 2007. "Crescimento Econômico E Meio Ambiente: O Que Está Faltando Para Entender O Elo Entre Eles?," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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