A Note on Environmental Policy and Public Debt Stabilization
This article analyzes the consequences of environmental tax policy under public debt stabilization constraint. A public sector of pollution abatement is financed by a tax on pollutant emissions and/or by public debt. At the same time, households can also invest in private pollution abatement activities. We show that the economy may be characterized by an environmental-poverty trap if debt is too large or public abatement is not sufficiently efficient with respect to the private one. However, there exists a level of public abatement and debt at which a stable steady state is optimal.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Jun 2012|
|Publication status:||Published in Macroeconomic Dynamics, Cambridge University Press (CUP), 2012, 16 (3), pp.477-492. 〈10.1017/S1365100510000672 〉|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01308390|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|