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Local and Global Externalities, Environmental Policies and Growth

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Author Info

  • Karen Pittel
  • Dirk Rübbelke

Abstract

The paper analyzes the implications of local and global pollution when two types of abatement activities can be undertaken. One type reduces solely local pollution (e.g., use of particulate matter filters) while the other mitigates global pollution as well (e.g., application of fuel saving technologies). In the framework of a 2-country endogenous growth model, the implications of different assumptions about the degree to which global externalities are internalized are analyzed. Subsequently, we derive policy rules adapted to the different scenarios. Special attention is paid to pollution, growth and optimal policy in the case of asymmetric internalization.

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File URL: http://www.bc3research.org/index.php?option=com_wpapers&task=downpubli&iddoc=26&repec=1&Itemid=279
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Bibliographic Info

Paper provided by BC3 in its series Working Papers with number 2010-15.

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Date of creation: Oct 2010
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Publication status: Published
Handle: RePEc:bcc:wpaper:2010-15

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Web page: http://www.bc3research.org/

Related research

Keywords: economic growth; global and local externalities; government policies;

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Cited by:
  1. Grazia Cecere & Susanna Mancinelli & Massimiliano Mazzanti, 2013. "Waste Prevention and Social Preferences: The Role of Intrinsic and Extrinsic Motivations," Working Papers 2013.44, Fondazione Eni Enrico Mattei.
  2. Corradini, Massimiliano & Costantini, Valeria & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Unveiling the dynamic relation between R&D and emission abatement," Ecological Economics, Elsevier, vol. 102(C), pages 48-59.
  3. Massimiliano Mazzanti & Valeria Costantini & Susanna Mancinelli & Massimilano Corradini, 2011. "Environmental and Innovation Performance in a Dynamic Impure Public Good Framework," Working Papers 201117, University of Ferrara, Department of Economics.

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