Labor Supply and Growth Effects of Environmental Policy under Technological Risk
AbstractThis paper analyzes the effects of technological risk on long–run growth when labor supply is elastic and production gives rise to a pollution externality. For the social planner as well as for the market economy we show that the randomness of production as well as the endogeneity of labor supply matter with respect to the equilibrium solution. The direction in which changes in the model parameters as well as changes of policy instruments influence labor supply and growth depends crucially on the volatility of output.
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Bibliographic InfoPaper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 08009.
Length: 27 pages
Date of creation: Mar 2008
Date of revision:
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stochastic growth; pollution; abatement; elastic labor supply;
Other versions of this item:
- Clemens, Christiane & Pittel, Karen, 2011. "Labor Supply And Growth Effects Of Environmental Policy Under Technological Risk," Macroeconomic Dynamics, Cambridge University Press, vol. 15(01), pages 31-59, February.
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- D9 - Microeconomics - - Intertemporal Choice and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-15 (All new papers)
- NEP-DGE-2008-03-15 (Dynamic General Equilibrium)
- NEP-ENE-2008-03-15 (Energy Economics)
- NEP-ENV-2008-03-15 (Environmental Economics)
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- Dimitrios Varvarigos, 2013. "Economic Growth, Health, and the Choice of Polluting Technologies: The Role of Bureaucratic Corruption," Discussion Papers in Economics 13/22, Department of Economics, University of Leicester.
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