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The long run dynamics of economic growth with environmental catastrophe

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  • Alex Coram

    (University of Western Australia)

Abstract

The purpose of this paper is to consider the dynamics of growth in a two state variable and two control variable model where the environment is taken as a constraint. This captures some elements of environmental problems not covered in the cost approach. It also captures the idea that the environment may be an absolute barrier or have a catastrophe boundary. It show that, even though the environment is not a cost, it may be optimal to cut growth before the barrier is reached. It also shows that the technology of production has a strong non-linear affect on maximum attainable output.

Suggested Citation

  • Alex Coram, 2018. "The long run dynamics of economic growth with environmental catastrophe," UMASS Amherst Economics Working Papers 2018-20, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2018-20
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    File URL: http://www.umass.edu/economics/publications/2018-20.pdf
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    References listed on IDEAS

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    1. Andrea Beltratti & Graciela Chichilnisky & Geoffrey Heal, 1993. "Sustainable Growth and the Green Golden Rule," NBER Working Papers 4430, National Bureau of Economic Research, Inc.
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    More about this item

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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