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Technological vs ecological switch and the environmental Kuznets curve

Author

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  • Raouf Boucekkine

    (AMU - Aix Marseille Université)

  • Aude Pommeret

    (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

  • Fabien Prieur

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, UM1 - Université Montpellier 1)

Abstract

We consider an optimal technology adoption AK model in line with Boucekkine Krawczyk and Vallée (2011): an economy, caring about consumption and pollution as well, starts with a given technological regime and may decide to switch at any moment to a cleaner technology at a given permanent or transitory output cost. At the same time, we posit that there exists a pollution threshold above which the assimilation capacity of Nature goes down, featuring a kind of irreversible ecological regime. We study how ecological irreversibility interacts with the ingredients of the latter optimal technological switch problem, with a special attention to induced capital-pollution relationship. We find that if a single technological switch is optimal, one recovers the Environmental Kuznets Curve provided initial pollution is high enough. If exceeding the ecological threshold is optimal, then the latter configuration is far from being the rule.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Raouf Boucekkine & Aude Pommeret & Fabien Prieur, 2011. "Technological vs ecological switch and the environmental Kuznets curve," Working Papers hal-02804858, HAL.
    • Handle: RePEc:hal:wpaper:hal-02804858
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02804858
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    Keywords

    ecological irreversibility; Environmental Kuznets Curve; Multi-stage optimal control; Courbes de Kuznets; Technology adoption;
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