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- Kuznets Curve And Transboundary Pollution

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  • Begoña Casino

    (Universitat de València)

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    Abstract

    This work presents a clearer way of solving the optimisation problem addressed by Selden and Song (1995)in order to derive the J curve for abatement. The proposed framework is also extended to a two-country model.Results are consistent, also for the two country case, with empirical evidence that shows a positive relationshipbetween environmental quality and economic growth for high income levels. A static comparative analysiscon¿rms that the smaller the rate of discount and/or the less polluting a technology is, the higher the steadystate stock of capital will b e. Moreover, the lack of coop eration is proved to result in smaller e¤ orts to abateemissions. Este trabajo presenta una forma más clara de resolver el problema deoptimización planteado por Selden y Song (1995) con el fin de obtener la curva en J para lasactividades de control de la contaminación. El esquema propuesto se extiende también a unmodelo de dos países. Los resultados son consistentes, también para el caso de dos países,con la evidencia empírica que muestra una relación positiva entre calidad medioambiental ycrecimiento económico para niveles altos de renta. Un análisis de estática comparativa confirmaque cuanto menor es la tasa de descuento y/o menos contaminante la tecnología utilizada,mayor será el stock de capital de estado estacionario. Además, se comprueba que la ausenciade cooperación se traduce en menores esfuerzos por controlar las emisiones.

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    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-1999-20.pdf
    File Function: Fisrt version / Primera version, 1999
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    Bibliographic Info

    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 1999-20.

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    Length: 29 pages
    Date of creation: Dec 1999
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasec:1999-20

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    Web page: http://www.ivie.es/
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    Related research

    Keywords: calidad medioambiental; crecimiento económico; control de la contaminación environmental quality; growth; pollution abatement;

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    References

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    1. 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.
    2. Gruver, Gene W., 1976. "Optimal investment in pollution control capital in a neoclassical growth context," Journal of Environmental Economics and Management, Elsevier, vol. 3(3), pages 165-177, October.
    3. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November.
    4. Frederick Ploeg & Cees Withagen, 1991. "Pollution control and the Ramsey problem," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(2), pages 215-236, June.
    5. Cees Withagen, 1995. "Pollution, abatement and balanced growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 5(1), pages 1-8, January.
    6. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    7. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    8. Tahvonen Olli & Kuuluvainen Jari, 1993. "Economic Growth, Pollution, and Renewable Resources," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 101-118, March.
    9. Selden Thomas M. & Song Daqing, 1995. "Neoclassical Growth, the J Curve for Abatement, and the Inverted U Curve for Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 162-168, September.
    10. Hettige, Hemamala & Lucas, Robert E B & Wheeler, David, 1992. "The Toxic Intensity of Industrial Production: Global Patterns, Trends, and Trade Policy," American Economic Review, American Economic Association, vol. 82(2), pages 478-81, May.
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