Technological vs. Ecological Switch and the Environmental Kuznets Curve

Boucekkine, Raouf; Pommeret, Aude; Prieur, Fabien

doi:10.1093/ajae/aas048

Cited by 26 publications

(32 citation statements)

References 12 publications

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“…The main relationship to be investigated is that between the optimal stocks of capital and pollution to uncover a possible environmental Kuznets curve as in Stokey (1998) or Boucekkine et al (2013). Regarding this relationship, the results of our experiments are reported in Figure 2 below.…”

Section:  mentioning

confidence: 99%

“…The production function is linear in the stock of capital, as in Stokey (1998) and Boucekkine et al (2013). .…”

Section: Modelmentioning

confidence: 99%

“…In other words, pollution drastically limits (optimal) growth. Several authors have extended Stokey's framework to account for more technological or ecological ingredients; Boucekkine et al (2013) is one of the most recent extensions. When pollution is irreversible (that is, when the environmental absorption capacity irreversibly declines above a certain pollution stock level), these authors show that the optimal relationship between income and pollution can take a much richer set of forms, although optimal exponential growth invariably vanishes under pollution externalities.…”

Section: Introductionmentioning

confidence: 99%

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Optimal Growth with Polluting Waste and Recycling

Boucekkine

Ouardighi

2016

Dynamic Modeling and Econometrics in Economics and Finance

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Abstract.We study an optimal AK-like model of capital accumulation and growth in the presence of a negative environmental externality in the tradition of Stokey (1998). Both production and consumption activities generate polluting waste. The economy exerts a recycling effort to reduce the stock of waste. Recycling also generates income, which is fully devoted to capital accumulation. The whole problem amounts to choosing the optimal control paths for consumption and recycling to maximize a social welfare function that notably includes the waste stock and disutility from the recycling effort. We provide a mathematical analysis of both the asymptotic behavior of the optimal trajectories and the shape of transition dynamics. Numerical exercises are performed to illustrate the analysis and to highlight some of the economic implications of the model.

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Section:  mentioning

confidence: 99%

“…The production function is linear in the stock of capital, as in Stokey (1998) and Boucekkine et al (2013). .…”

Section: Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Optimal Growth with Polluting Waste and Recycling

Boucekkine

Ouardighi

2016

Dynamic Modeling and Econometrics in Economics and Finance

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“…In line with a recent strand of literature stating that there exists a trade-o¤ between economic performance and environmental quality (Boucekkine et al, 2011(Boucekkine et al, , 2013), in our model the abatement e¤ort improves the environmental quality of the good at the expenses of the corresponding hedonic quality. Since complying with stricter environmental norms is costly, when a …rm invests in cleaner technology, it sacri…es at least in a short-run perspective its own economic performance.…”

Section: Introductionmentioning

confidence: 60%

Hedonic Quality and Social Norms: A Hybrid Model of Product Differentiation

2015

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We analyse how strategic competition between a green …rm and a brown competitor develops when their products are di¤erentiated along two dimensions: hedonic quality and environmental quality. The former dimension refers to the pure (intrinsic) performance of the good, whereas the latter dimension has a positional content: buying green goods satis…es the consumers' desire to be socially worthy citizens. Product variants thus comply at di¤erent levels with "green" social norms. Consumer preferences depend on a combination of hedonic quality and compliance with social norms. Assuming that the high hedonic quality variant complies less with these norms than the low hedonic quality variant, we characterize di¤erent equilibrium con…gurations which appear as a result of both the intensity of such norms and the willingness to pay for the hedonic quality. Afterwards, we discuss the policy implications of our analysis. Keywords: Hedonic quality, environmental quality, relative preferences.JEL Classi…cation: D62; L13; H13.This working paper is the revised and updated version of the Working Paper DSE N 950. In this new version, we point out the economic e¤ects of strategic competition when products are di¤erentiated along two dimensions that give rise to a hybrid model of product di¤erentiation. We are grateful to

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“…The proportion of clean but expensive energy can then be adjusted over time. Boucekkine et al (2013), using Pontryagin, had to check all possible candidates to optimality (inner solutions, corner solutions, solutions with adoption of renewable energy and those without, solutions with reversibility of pollution and those without), computing the associated value functions for 4 each set of parameters and for each set of initial conditions, to finally select the maximal value. In contrast, viability theory yields optima in a necessary and sufficient way, allowing a systematic exploration of the state space.…”

Section: Introductionmentioning

confidence: 99%

Optimal transition to renewable energy with threshold of irreversible pollution

Bonneuil

Boucekkine

2016

European Journal of Operational Research

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When cheap fossil energy is polluting and pollutant no longer absorbed beyond a certain concentration, there is a moment when the * bonneuil@ined.fr † Raouf.Boucekkine@uclouvain.be 1 introduction of a cleaner renewable energy, although onerous, is optimal with respect to inter-temporal utility. The cleaner technology is adopted either instantaneously or gradually at a controlled rate. The problem of optimum under viability constraints is 6-dimensional under a continuous-discrete dynamic controlled by energy consumption and investment into production of renewable energy. Viable optima are obtained either with gradual or with instantaneous adoption. A longer time horizon increases the probability of adoption of renewable energy and the time for starting this adoption. It also increases maximal utility and the probability to cross the threshold of irreversible pollution. Exploiting a renewable energy starts sooner when adoption is gradual rather than instantaneous. The shorter the period remaining after adoption until the time horizon, the higher the investment into renewable energy.

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Technological vs. Ecological Switch and the Environmental Kuznets Curve

Cited by 26 publications

References 12 publications

Optimal Growth with Polluting Waste and Recycling

Optimal Growth with Polluting Waste and Recycling

Hedonic Quality and Social Norms: A Hybrid Model of Product Differentiation

Optimal transition to renewable energy with threshold of irreversible pollution

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