Abstract

https://ssrn.com/abstract=2445867
 


 



Environmental Pollution in a Growing Economy with Endogenous Structural Change


Anton A. Bondarev


WWZ Universität Basel

Alfred Greiner


Bielefeld University - Department of Business Administration and Economics

June 1, 2014

Bielefeld Working Papers in Economics and Management No. 07-2014

Abstract:     
In this paper we study the impact of environmental pollution in an endogenous growth model with endogenous structural change. The paper allows for both horizontal and vertical innovations where newer technologies are less polluting compared to older ones. The analysis shows that the presence of environmental externalities stimulates structural change but reduces the growth rate of the economy. Further, comparing the models with and without structural change demonstrates that the latter implies stronger environmental damages and, consequently, a lower growth rate than the first one. Finally, levying a tax on the polluting output speeds up structural change, thus, reducing environmental pollution and spurring economic growth.

Number of Pages in PDF File: 32

Keywords: Environmental Damages, Endogenous Growth, Creative Destruction, Endogenous Structural Change

JEL Classification: Q55, O31, O44


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Date posted: June 5, 2014 ; Last revised: February 7, 2017

Suggested Citation

Bondarev, Anton A. and Greiner, Alfred, Environmental Pollution in a Growing Economy with Endogenous Structural Change (June 1, 2014). Bielefeld Working Papers in Economics and Management No. 07-2014. Available at SSRN: https://ssrn.com/abstract=2445867 or http://dx.doi.org/10.2139/ssrn.2445867

Contact Information

Anton A. Bondarev (Contact Author)
WWZ Universität Basel ( email )
Basel, 4051
Switzerland
Alfred Greiner
Bielefeld University - Department of Business Administration and Economics ( email )
P.O. Box 100131
Bielefeld, 33501
Germany
+49 521 106 4859 (Phone)
+49 521 106 67120 (Fax)
HOME PAGE: http://phoenix.wiwi.uni-bielefeld.de/lehrbereiche/vwl/wipol
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