Barthel, Jens (2007): Environmental policy in dynamic models with pollution by consumers: The greening and blackening of preferences.
Download (563Kb) | Preview
The paper discusses questions resulting from a study of the interaction of a change of preferences and environmental policy. In a model with pollution as a side effect of consumption environmental policy is introduced in the form of a consumption tax with or without a subsidy on eco-friendly investments. In simulations we observe the dynamic behavior of models before and after sudden changes of exogenous variables. These shocks are jumps in the preference structure of individuals towards more environmental-friendly or consumption-friendly attitudes. Additionally we examine the effect of a lagged reaction of the policy agents.
|Item Type:||MPRA Paper|
|Original Title:||Environmental policy in dynamic models with pollution by consumers: The greening and blackening of preferences|
|Keywords:||Environmental Policy Instruments;Preference Change|
|Subjects:||C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
|Depositing User:||Jens Barthel|
|Date Deposited:||11. Apr 2008 14:23|
|Last Modified:||13. Feb 2013 05:22|
Barro, Robert, and Xavier Sala-i-Martin (1995): Economic Growth, McGraw Hill, New York et al.
Barthel, Jens (2005): Environmental Policy in Dynamic Models: The Impact of the Elasticity of Substitution if Consumers Pollute, Humboldt-Universität zu Berlin, Discussion Paper - Economics Series 198.
Barthel, Jens (2007a): Environmental Policy in Dynamic Models: The Impact of Exogenous Shocks and Dozy Politicians, Humboldt-Universität zu Berlin, Discussion Paper - Economics Series 200.
Barthel, Jens (2007b): The Role of the Elasticity of Substitution in Dynamic Models with Environmental Policy, in: John Roufagalas (ed.), Mechanisms & Policies in Economics, ATINER, Athens, 207-223.
Bohm, Peter, and Clifford S. Russell (1985): Comparative Analysis of Alternative Policy Instruments, in: Allan Kneese and James L. Sweeney (eds.), Handbook of Natural Resource and Energy Economics, North-Holland, 395-460.
Bovenberg, A. Lans, and Ruud A. de Mooij (1997): Environmental Tax Reform and Endogenous Growth, Journal of Public Economics, 63, 207-237.
Bovenberg, A. Lans, and Sjak A. Smulders (1995): Environmental Quality and Pollution-augmenting Technical Change in a Two-sector Endogenous Growth Model, Journal of Public Economics, 57, 369-391.
Bovenberg, A. Lans, and Sjak A. Smulders (1996): Transitional Impacts of Environmental Policy in an Endogenous Growth Model, International Economic Review, 37, 861-891.
Brunner, Martin, and Holger Strulik (2002): Solution of Perfect Foresight Saddlepoint Problems: A Simple Method and Applications, Journal of Economic Dynamics and Control, 26, 737-753.
Chiang, Alpha C. (1984): Fundamental Methods of Mathematical Economics, Third Edition, McGraw-Hill, New York et al.
Conrad, Klaus (1999): Computable General Equilibrium Models for Environmental Economics and Policy Analysis, in: Jeroen C. J. M. van den Bergh (ed.), The Handbook of Environmental and Resource Economics, Edward Elgar Publishing Comp., Cheltenham (UK).
Forster, Bruce A. (1973): Optimal Capital Accumulation in a Polluted Environment, Southern Economic Journal, 39, 544-547.
Gradus, Raymond, and Sjak A. Smulders (1993): The Trade-off Between Environmental Care and Long-term Growth - Pollution in Three Prototype Growth Models, Journal of Economics/Zeitschrift für Nationalökonomie, 58, 25-51.
Hettich, Frank (2000): Economic Growth and Environmental Policy, Edward Elgar Publishing Comp., Cheltenham (UK), Northampton, MA, USA.
Huang, Chung-Huang, and Deqin Cai (1994): Constant Returns Endogenous Growth with Pollution Control, Environmental and Resource Economics, 4, 383-400.
Ligthart, Jenny E., and Frederick van der Ploeg (1994): Pollution, the Cost of Public Funds and Endogenous Growth, Economics Letters, 46, 351-361.
Liu, Jianguo, and Jared Diamond (2005): China's Environment in a Globalizing World, Nature, 435, 1179-1186.
OECD Working Party on Environmental Performance (2006): Environmental Performance Review of China - Conclusions and Recommendations (Final), http://www.oecd.org/dataoecd/58/23/37657409.pdf (4.12.2006).
Smulders, Sjak A., and Raymond Gradus (1996): Pollution Abatement and Long-term Growth, European Journal of Political Economy, 12, 505-532.
The World Bank (2007): Cost of Pollution in China, Washington, DC.