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Uniqueness and Indeterminacy of Equilibria in a Model with Polluting Emissions

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Author Info
Giovanni Bella (University of Cagliari)

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Abstract

Is pollution a dirty word? To answer this question we develop an endogenous growth model à la Rebelo (1991) where dirtiness becomes a fundamental choice variable for the economy to grow. Conclusions to our analysis say that a positive sustainable economic growth is attainable only if polluting production activities are taken into account. Moreover, transitional dynamics points out that local stability and uniqueness of equilibria are also achieved.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.28.

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Date of creation: Feb 2006
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Handle: RePEc:fem:femwpa:2006.28

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Related research
Keywords: Environmental quality Endogenous economic growth Pollution-augmenting technology

Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - -
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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References listed on IDEAS
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  1. Grimaud, Andre, 1999. "Pollution Permits and Sustainable Growth in a Schumpeterian Model," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 249-266, November. [Downloadable!] (restricted)
  2. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June. [Downloadable!] (restricted)
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  3. Benhabib Jess & Perli Roberto, 1994. "Uniqueness and Indeterminacy: On the Dynamics of Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 63(1), pages 113-142, June. [Downloadable!] (restricted)
  4. Musu, Ignazio, 1996. "Transitional Dynamics to Optimal Sustainable Growth," CEPR Discussion Papers 1282, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Robert E. Lucas, Jr., 1989. "On the Mechanics of Economic Development," NBER Reprints 1176, National Bureau of Economic Research, Inc.
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  6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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