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A note on pollution and infectious disease

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  • Guillaume MOREL

Abstract

Within the present paper, we build a model from epidemiology and economics to study the impact of infectious diseases on the steady states and dynamic of an economy. More precisely, we embed a SIS model within a Ramsey growth model in a close framework with a tax where pollution comes from consumption. Firstly, we show that a consumption tax allocated to a depollution policy possesses an ambiguous effect on consumption and welfare, depending on the disease infectivity factor. Secondly, we point out that an increase in the spread of an infectious disease can’t make a limit cycle (Hopf bifurcation) emerge near the endemic steady state.

Suggested Citation

  • Guillaume MOREL, 2020. "A note on pollution and infectious disease," Working Papers of BETA 2020-38, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2020-38
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    File URL: http://beta.u-strasbg.fr/WP/2020/2020-38.pdf
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    References listed on IDEAS

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    1. Stefano Bosi & David Desmarchelier, 2018. "Pollution and infectious diseases," International Journal of Economic Theory, The International Society for Economic Theory, vol. 14(4), pages 351-372, December.
    2. Goenka, Aditya & Liu, Lin & Nguyen, Manh-Hung, 2014. "Infectious diseases and economic growth," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 34-53.
    3. Stefano Bosi & David Desmarchelier, 2021. "Pollution effects on disease transmission and economic stability," International Journal of Economic Theory, The International Society for Economic Theory, vol. 17(2), pages 169-189, June.
    4. Stefano Bosi & David Desmarchelier, 2017. "Are the Laffer curve and the green paradox mutually exclusive?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(5), pages 937-956, October.
    5. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(4), pages 360-394, August.
    6. Bosi, Stefano & Desmarchelier, David, 2019. "Local bifurcations of three and four-dimensional systems: A tractable characterization with economic applications," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 38-50.
    7. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
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    More about this item

    Keywords

    Hopf bifurcation; Pollution; Ramsey model; SIS model.;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • I1 - Health, Education, and Welfare - - Health

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