The Green Solow Model

Brock, William A.; Taylor, M. Scott

doi:10.3386/w10557

Cited by 120 publications

(123 citation statements)

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“…For example, in our analysis we have not considered the effect of cleaning technological progress, thus it is natural wondering how our results might differ by introducing such a further complication in the joint dynamics of capital and pollution. In particular, the arising of an environmental Kuznets curve (as shown in Brock and Taylor, 2010) which is generally interpreted as a positive outcome for the economic and environmental system could be totally prevented by the diffusion of pollution from highly to lowly polluted multivariable function) defined below min x f (x) such that…”

Section: Discussionmentioning

confidence: 99%

“…Nowadays also policymakers seem to agree that some concrete effort is needed to effectively promote sustainable development (UNEP, 2012), thus the question has become even more relevant than ever. Much attention in literature is placed on the joint evolution of capital and pollution, looking for conditions ensuring that sustainable growth is actually possible (see Xepapadeas, 2005, for a survey; or, among others, Gradus and Smulders, 1993;Bovenberg and Smulders, 1995;Brock and Taylor, 2010). To the best of our knowledge, all the existing works focus only on the temporal economic and environmental dynamics without considering their spatial interaction.…”

Section: Introductionmentioning

confidence: 99%

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Pollution diffusion and abatement activities across space and over time

Torre

Liuzzi

Marsiglio

2015

Mathematical Social Sciences

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We analyze the spatio-temporal dynamics of capital and pollution in an economic growth model with purposive environmental protection activities. The production process of a unique homogeneous good generates pollution, thus the increases in output associated with economic growth tend to rise the stock of pollution. Pollution is a negative production externality which thus feeds back on the economy lowering the level of output; in order to compensate for such a negative effect associated with economic development, pollution is reduced by publicly funded abatement activities. We firstly consider a Solow-type framework in which economic and environmental policies are completely exogenous, and then we move to a Ramsey-type context in which they are endogenously determined. We analyze the spatio-temporal dynamics of the model economy through numerical simulations, and we consider two different specifications of the production function (a globally concave and a convex-concave technology) in order to stress the role that eventual poverty traps might play on both economic and environmental outcomes. We show that in the convexconcave technology framework, whenever rich regions are substantially rich diffusion can help poor regions to escape their poverty traps; if however they are not rich enough diffusion might condemn also rich regions to collapse. However, even if rich regions are particularly rich whenever the pollution externality is strong, the whole spatial economy might be doomed to collapse. Forthcoming in Mathematical Social Sciences AbstractWe analyze the spatio-temporal dynamics of capital and pollution in an economic growth model with purposive environmental protection activities. The production process of a unique homogeneous good generates pollution, thus the increases in output associated with economic growth tend to rise the stock of pollution. Pollution is a negative production externality which thus feeds back on the economy lowering the level of output; in order to compensate for such a negative effect associated with economic development, pollution is reduced by publicly funded abatement activities. We firstly consider a Solow-type framework in which economic and environmental policies are completely exogenous, and then we move to a Ramseytype context in which they are endogenously determined. We analyze the spatio-temporal dynamics of the model economy through numerical simulations, and we consider two different specifications of the production function (a globally concave and a convex-concave technology) in order to stress the role that eventual poverty traps might play on both economic and environmental outcomes. We show that in the convex-concave technology framework, whenever rich regions are substantially rich diffusion can help poor regions to escape their poverty traps; if however they are not rich enough diffusion might condemn also rich regions to collapse. However, even if rich regions are particularly rich whenever the pollution externality is strong, the whole spatial economy mi...

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Pollution diffusion and abatement activities across space and over time

Torre

Liuzzi

Marsiglio

2015

Mathematical Social Sciences

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“…In particular, innovation opportunities and incentives not only determine the growth rate of income, but also whether technological change is pollution-using or pollution-saving. Usually, the theoretical EKC literature assumes either exogenous income (Lieb 2002, Andreoni andLevinson 2001), exogenously given factor endowments that determine income (Copeland and Taylor 2003, chapter 3) or exogenous technological change (Brock and Taylor 2004). Previous results, however, have pointed out that the source of growth and the nature of technology determines whether economic growth and pollution are linked or delinked.…”

Section: Introductionmentioning

confidence: 98%

Economic Growth and the Diffusion of Clean Technologies: Explaining Environmental Kuznets Curves

Smulders

Bretschger

Egli

2010

Environ Resource Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may August 2005Production often causes pollution as a by-product. Once environmental degradation becomes too severe, regulation is introduced by which society forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology" and investigate how it interferes with economic growth driven by quality-improvements. The model gives an explanation for the inverted U-shaped pollution-income relation found in empirical research for many pollutants (Environmental Kuznets Curve). We provide an analytical foundation for the claim that the rise and decline of pollution can be explained by policy-induced technology shifts and intrasectoral changes.

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“…Stock or flow pollution represents an argument of both the production function and the utility function of the representative consumer (Selden and Song, 1994;Stokey, 1998;Brock and Taylor, 2004b).…”

Section: Linking Economic Growth and Environment From A Theoretical Pmentioning

confidence: 99%