Structural Change with Joint Production of Consumption and Environmental Pollution: A Neo-Austrian Approach
25 Pages Posted: 19 Jan 2005 Last revised: 20 Feb 2015
Abstract
This paper examines whether and to what extent the well known necessary and sufficient conditions for the innovation of a new production technique remain valid if the new production technique jointly produces an unwanted and at least potentially harmful output. The formal framework employed here is an extension of the neo-Austrian three-process model as introduced in [Struct. Change Econ. Dyn. 2 (1991) 143]. Three possible ways of comparing the desired consumption output and the negative environmental side-effects in the innovation decision are introduced: a technical, an ecological and an economic solution. Although adjusted necessary and sufficient conditions can be derived, full replacement of the old production technique cannot be achieved in general.
Keywords: Environmental pollution, Neo-Austrian capital theory, Innovation of techniques, Joint production, Structural change
JEL Classification: O33, Q21, L11
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Patrick K. Asea and Paul J. Zak
-
By Ralph Winkler, Ullrich Brandt-pollmann, ...
-
Optimal Compliance With Emission Constraints: Dynamic Characteristics and the Choice of Technique
-
Increasing Returns and Cycles in Fishing
By Matti Liski, Peter M. Kort, ...
-
Numerical Solution of Optimal Control Problems With Constant Control Delays
By Ullrich Brandt-pollmann, Ralph Winkler, ...
-
Numerical Solution of Optimal Control Problems with Constant Control Delays
By Ullrich Brandt-pollmann, Ralph Winkler, ...
-
The Role of Environmental and Technology Policies in the Transition to a Low-Carbon Energy Industry
By Christoph Heinzel and Ralph Winkler
-
Distorted Time Preferences and Time-to-Build in the Transition to a Low-Carbon Energy Industry
By Christoph Heinzel and Ralph Winkler
-
Optimal Dynamic Scale and Structure of a Multi-Pollution Economy
By Stefan Baumgärtner, Frank Joest, ...
-
Optimal Control of Pollutants with Delayed Stock Accumulation