Clean versus Dirty Economic Growth

Forskningsoutput: Bok/rapportBokVetenskapligPeer review


This document considers an economy with many regions and two engines of growth: horizontal R&D, which increases the number of polluting product lines; and vertical R&D, which improves productivity in these lines. Pollution in any region decreases welfare in all regions. Any group of regions can form a jurisdiction where a common policy maker controls pollution. Large jurisdictions, which can better internalize externality through pollution, perform vertical R&D. Because jurisdictions face decreasing unit costs of administration, they expand, performing first horizontal and then vertical R&D. This generates an environmental Kuznets curve (EKC) on which pollution first aggravates and then alleviates.
FörlagHelsinki Center of Economic Research
Antal sidor19
ISBN (elektroniskt)978-952-10-7225-3
StatusPublicerad - 6 jun 2012
MoE-publikationstypC1 Separata vetenskapliga böcker


NamnEconomics Discussion Paper
ISSN (elektroniskt)1459-3696

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