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Crescita, ambiente e commercio internazionale in un modello con innovazioni tecnologiche

  • Eleonora Cavallaro

The paper develops a small open economy growth model with endogenous innovations, in the presence of environmental externalities. Building on the Grossman ad Helpman (1991) analytical framework of endogenous growth in open economies, pollution is introduced into the analysis in the form of a flow of emissions which are ultimately linked to the aggregate production of goods and reduce consumers’ utility. The paper assesses the effects on welfare of the international specialisation for a small open economy which adopts a policy of pollution control, and allows for the consideration of mixed permits and tax schemes. Emphasis is placed on the analysis of the overall direct and indirect distortions which may negatively affect the environment and reduce the gains from trade, and on the consequent second best policy problems. The elimination of environmental distortions may in fact result in a reduction of the growth rate of the economy, unless investment in knowledge capital, that is in clean technologies, is introduced. The latter appears to be essential in order to loose the trade off between growth and environmental protection. The paper stresses the need for the international co-ordination of both trade and environmental policies, in the context of the increasing globalisation of trade markets which brings about a strengthening of price competition among countries, especially in times of a slowdown of economic activity.

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Paper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 48.

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Length: 32
Date of creation: Feb 2002
Date of revision:
Handle: RePEc:sap:wpaper:wp48
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  1. Peretto, Pietro F., 1996. "Technological Change and Population Growth," Working Papers 96-28, Duke University, Department of Economics.
  2. Markusen, James R., 1975. "International externalities and optimal tax structures," Journal of International Economics, Elsevier, vol. 5(1), pages 15-29, February.
  3. Elbasha, Elamin H. & Roe, Terry L., 1996. "On Endogenous Growth: The Implications of Environmental Externalities," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 240-268, September.
  4. repec:cup:cbooks:9780521322249 is not listed on IDEAS
  5. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  6. Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
  7. repec:cup:cbooks:9780521311120 is not listed on IDEAS
  8. Alwyn Young, 1998. "Growth without Scale Effects," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 41-63, February.
  9. Copeland Brian R., 1994. "International Trade and the Environment: Policy Reform in a Polluted Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 26(1), pages 44-65, January.
  10. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  11. Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
  12. Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-49.
  13. Romer, Paul M, 1987. "Growth Based on Increasing Returns Due to Specialization," American Economic Review, American Economic Association, vol. 77(2), pages 56-62, May.
  14. Lans Bovenberg, A. & Smulders, Sjak, 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Journal of Public Economics, Elsevier, vol. 57(3), pages 369-391, July.
  15. Karl-Göran Mäler, 1991. "National accounts and environmental resources," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 1(1), pages 1-15, March.
  16. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  17. Dinopoulos, Elias & Thompson, Peter, 1998. " Schumpeterian Growth without Scale Effects," Journal of Economic Growth, Springer, vol. 3(4), pages 313-35, December.
  18. repec:cup:cbooks:9780521590891 is not listed on IDEAS
  19. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
  20. Jones, Charles I, 1995. "R&D-Based Models of Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 103(4), pages 759-84, August.
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