Solving Infinite Horizon Growth Models with an Environmental Sector
AbstractThis paper concerns computational models in environmental economics and policy, particularly so-called integrated assessment models. For the most part, such models are simply extensions of standard neoclassical growth models, extended by including the environment and pollution generation. We review the structure of integrated assessment models, distinguishing between finite horizon and infinite horizon models, both deterministic and stochastic. We present a new solution algorithm for infinite horizon integrated assessment models, relying on a neural net approximation of the value function within an iterative version of the Bellman equation.
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Bibliographic InfoPaper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt3hd4c4v3.
Date of creation: 25 Jul 1999
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Solving Infinite Horizon Growth Models with an Environmental Sector;
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- Kelly, David L & Kolstad, Charles D, 2001. "Solving Infinite Horizon Growth Models with an Environmental Sector," Computational Economics, Society for Computational Economics, vol. 18(2), pages 217-31, October.
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