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Environmental protection and economic growth

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TD 194 - Vladimir Kuhl Teles.pdf (240.9Kb)
Date
2009-08-24
Author
Teles, Vladimir Kuhl
Arraes, Ronaldo
Metadata
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Abstract
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.
URI
http://hdl.handle.net/10438/2726
Collections
  • FGV EESP - Textos para Discussão / Working Paper Series [545]
Knowledge Areas
Economia
Subject
Economia
Keyword
AK Growth Model
Environmental Kuznets Curve
Hopf Bifurcation

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