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Optimal growth with pollution : how to use pollution permits ? Author info | Abstract | Publisher info | Download info | Related research | Statistics Pierre-André Jouvet (GAINS et GREQAM)
Philippe Michel (GREQAM et EUREQua )
Gilles Rotillon (THEMA)
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registered author(s):
We study optimal growth and its decentralization in an overlapping generations model. The decentralization of an optimal path needs some specific taxes in addition to lump-sum transfers if there are externalities. The introduction of market of permits allows neutralizing the external environmental effects. We shows that there is a unique management of permits such that the equilibrium coincides with the optimal path : all permits should be auctioned i.e. no permits to firms. This conclusion is in contradiction with the usual pratice of grandfathering.
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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number
v04012.
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Length: 21 pages
Date of creation: Feb 2004Date of revision:
Handle: RePEc:mse:wpsorb:v04012Contact details of provider: Postal: 106 - 112 boulevard de l'H�pital, 75647 Paris cedex 13 Phone: 01 44 07 81 00 Fax: 01 44 07 81 09 Email: Web page: http://mse.univ-paris1.fr/ More information through EDIRC
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Keywords: Optimal growth ; environment ; market of permits. ; Other versions of this item:
Find related papers by JEL classification: D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis D9 - Microeconomics - - Intertemporal Choice and Growth Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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Pierre-André Jouvet & Fabien Prieur, 2006.
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BRECHET, Thierry & LAMBRECHT, StŽphane & PRIEUR, Fabien, 2005.
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Pierre-André Jouvet & Philippe Michel & Gilles Rotillon, 2006.
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