Environmental protection and economic growth

AUTOR(ES)
DATA DE PUBLICAÇÃO

24/08/2009

RESUMO

This paper explores the link between environmental policy and economic growth by employing an extension of the AK Growth Model. We include a state equation for renewable natural resources. We assume that the change in environmental regulations induces costs and that economic agents also derive some utility from capital stock accumulation vis-`a-vis the environment. Using the Hopf bifurcation theorem, we show that cyclical environmental policy strategies are optimal, providing theoretical support for the Environmental Kuznets Curve.

ASSUNTO(S)

ak growth model, environmental kuznets curve, hopf bifurcation

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