Endogenous Growth and the Possibility of Eliminating Pollution

Emission policy in an economic union with Poisson technological change

“…This result is in line with Reis (2001). The central government sets the tax τ so that this Pareto optimum is established, l = l * .…”

“…Philippopoulos and Economides show that the type of policy externality from one country to another changes from positive into negative, when capital accumulation is introduced into the model: the tax on externality is too low without, but too high with capital accumulation. In this study, I show that the tax on externality remains too low, after dynamics is introduced in the form of R&D. Reis (2001) examines the case where welfare depends on emissions and R&D increases the probability that at some moment in the future a technology is discovered that will eliminate emissions. 2 She shows that the hope of discovering such a technology (measured by the probability of the discovery) increases the optimal rate of growth.…”

Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results

“…The same report highlights the importance of new technologies in the falling trend of energy efficiency. There is also literature on economic growth theory in which pollution can be decreased by technological developments ( [26,27]). Reference [28] studied the importance of developing new technologies in decreasing costs and implementing more innovative and practical approaches to energy management.…”

Innovation and Environmental Policy: Clean vs. Dirty Technical Change

“…In the next section we solve for the social planner's problem and compare the optimal solution with the laissez-faire economy, which may be obtained from (16), (17) and (19) when φ = 1 and s = τ = 0. 7 We briefly analyze the stability properties of the model outside the BGP: the equilibrium condition for the relative profitability of innovations along the BGP is given by…”

“…In endogenous growth models with environmental concerns, stagnation along the optimal path is avoided, either through increased abatement or through technological progress, as shown in Bovenberg and Smulders [4], Stokey [19], Elbasha and Roe [7], and Reis [16], among others. Therefore, the development of environmentally-friendly technologies protects the environment and, at the same time, drives economic growth, lowering the trade-off between environmental quality and growth.…”