Dynamic analysis of a renewable resource in a small open economy: The role of environmental policies for the environment
We examine the effects of environmental policies such as a subsidy for reforestation and an export-income tax in a small open economy with a renewable resource. In the small economy, the harvested renewable resources are exported to acquire foreign assets and consumers can invest in the natural resource to preserve it. In the setup, using a phase diagram, we show how the environmental policies affect the natural resource and the domestic economy.
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|Date of creation:||Jul 2010|
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|Contact details of provider:|| Web page: http://www.econ.osaka-u.ac.jp/|
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- Ayong Le Kama, Alain D., 2001. "Sustainable growth, renewable resources and pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 25(12), pages 1911-1918, December.
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