Environmental Policy in an Endogenous Growth Model with Expanding Variety
Affiliation auteurs | Affiliation ok |
Titre | Environmental Policy in an Endogenous Growth Model with Expanding Variety |
Type de publication | Journal Article |
Year of Publication | 2017 |
Auteurs | Bianco D |
Journal | REVUE D ECONOMIE POLITIQUE |
Volume | 127 |
Pagination | 1013-1028 |
Date Published | NOV-DEC |
Type of Article | Article |
ISSN | 0373-2630 |
Mots-clés | endogenous growth, Environmental policy, Porter hypothesis |
Résumé | In this paper, we analyze the long-term impact of an environmental policy on economic growth, pollution and welfare. A standard growth model with horizontal innovation is modified by including pollution which comes from the use of intermediate goods production. Taxation on pollution reduces profits of final good producer as well as intermediate good producers. In this setting, profit gains is explained by a realloaction of labor from intermediate goods sector to R&D sector which enhances innovation, growth and welfare while it reduces pollution. |
DOI | 10.3917/redp.276.1013 |