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On the Beach? Sustainability, Optimal Pollution, and Optimal Population

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Author Info
Ulla Lehmijoki
Abstract

Is it possible that the utility maximizing behavior leads the mankind to destruction? We develop a model with optimal pollution and optimal population in which population growth rate decreases along with pollution. We study if the optimal path is demographically sustainable, i.e. if it can provide non-decreasing consumption for a non-decreasing population. We find that demographic sustainability is impossible without technical progress. Technical progress, however, does not necessarily lead to demographically sustainable growth.

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File URL: http://www.degit.ifw-kiel.de/papers/degit_09/C009_039.pdf
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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c009_039.

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Length: 18 pages
Date of creation: Jun 2004
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Handle: RePEc:deg:conpap:c009_039

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  2. Benveniste, L. M. & Scheinkman, J. A., 1982. "Duality theory for dynamic optimization models of economics: The continuous time case," Journal of Economic Theory, Elsevier, vol. 27(1), pages 1-19, June. [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.
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  5. Simone Valente, 2004. "Sustainable Development: Renewable Resources and Technological Progress," CEIS Research Paper 54, Tor Vergata University, CEIS. [Downloadable!]
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  6. Galor, Oded & Weil, David, 1999. "From Malthusian Stagnation to Modern Growth," CEPR Discussion Papers 2082, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Charles I. Jones, 1999. "Growth: With or Without Scale Effects?," American Economic Review, American Economic Association, vol. 89(2), pages 139-144, May. [Downloadable!] (restricted)
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  8. Robert W. Fogel, 1999. "Catching Up with the Economy," American Economic Review, American Economic Association, vol. 89(1), pages 1-21, March. [Downloadable!] (restricted)
  9. Pezzey, John C V & Withagen, Cees A, 1998. " The Rise, Fall and Sustainability of Capital-Resource Economies," Scandinavian Journal of Economics, Blackwell Publishing, vol. 100(2), pages 513-27, June. [Downloadable!] (restricted)
  10. Edward B. Barbier, 2003. "The Role of Natural Resources in Economic Development," Australian Economic Papers, Blackwell Publishing, vol. 42(2), pages 253-272, 06. [Downloadable!] (restricted)
  11. R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
  12. 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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  13. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-39, May. [Downloadable!] (restricted)
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