Pollution Abatement as a Source of Stabilisation and Long-Run Growth

Theodore Palivos and Dimitrios Varvarigos ()

No 11/04, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: In a two-period overlapping generations model with production, we consider the damaging impact of environmental degradation on health and, consequently, life expectancy. The government’s involvement on policies of environmental preservation proves crucial for both the economy’s short-term dynamics and its long-term prospects. Particularly, an active policy of pollution abatement emerges as an important engine of long-run economic growth. Furthermore, by eliminating the occurrence of limit cycles, pollution abatement is also a powerful source of stabilisation.

Keywords: Growth; Cycles; Environmental quality; Pollution abatement (search for similar items in EconPapers)
JEL-codes: O41 Q56 (search for similar items in EconPapers)
Date: 2010-10, Revised 2010-10
New Economics Papers: this item is included in nep-dge, nep-ene, nep-env and nep-fdg
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: POLLUTION ABATEMENT AS A SOURCE OF STABILIZATION AND LONG-RUN GROWTH (2017)
Working Paper: Pollution Abatement as a Source of Stabilisation and Long-Run Growth (2010)
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