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Growth and Distribution under an Environmental Restriction

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  • Hosoda, Eiji

Abstract

The author introduces an environmental restriction into the traditional two-sector growth model with two classes and analyzes how distributional variables, per capita consumption, and the growth rate are affected in the long-run if an economy is competitive. As an environmental restriction, the author considers an emission-rate constraint, which is imposed on each industry by the government. An emission charge is assumed to be determined by the balance of supply of and demand for emission rights. Another interpretation of this model is possible, depending upon which variable is predetermined as an exogenous parameter. Copyright 1994 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Hosoda, Eiji, 1994. "Growth and Distribution under an Environmental Restriction," The Manchester School of Economic & Social Studies, University of Manchester, vol. 62(1), pages 60-80, March.
  • Handle: RePEc:bla:manch2:v:62:y:1994:i:1:p:60-80
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    Cited by:

    1. Eiji Hosoda, 2000. "Asymmetry of price control and quantity control in an environmental policy," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 3(4), pages 381-397, December.

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