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J curve for abatement with transboundary pollution

Author

Listed:
  • Begona Casino

    (Department of Economic Analysis, University of Valencia)

Abstract

In this note an alternative framework to Selden and Song's (1995) work is proposed in order to clarify some of their results and verify whether the relationship between pollution abatement and national income can be drawn as a J curve when there is more than one country involved. As Selden and Song do, pollution is considered as a flow externality. Their model is extended to a two country case which requires the use of differential games. The optimisation problem is decomposed into two stages, the pollution abatement and the accumulation problem. A J curve for pollution abatement is replicated and a static comparative analysis confirms that the smaller the rate of discount and/or the less polluting a technology is, the higher the stock of capital, current expenditure and pollution abatement will be at the steady state.

Suggested Citation

  • Begona Casino, 2002. "J curve for abatement with transboundary pollution," Economics Bulletin, AccessEcon, vol. 17(2), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-02q20002
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    References listed on IDEAS

    as
    1. Kaitala, Veijo & Pohjola, Matti & Tahvonen, Olli, 1992. " An Economic Analysis of Transboundary Air Pollution between Finland and the Former Soviet Union," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(3), pages 409-424.
    2. Selden Thomas M. & Song Daqing, 1995. "Neoclassical Growth, the J Curve for Abatement, and the Inverted U Curve for Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 162-168, September.
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    Cited by:

    1. Myrto Kasioumi & Thanasis Stengos, 2023. "A Circular Model of Economic Growth and Waste Recycling," Circular Economy and Sustainability,, Springer.

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    More about this item

    Keywords

    differential games;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • D6 - Microeconomics - - Welfare Economics

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