 On the Joint Dynamics of Pollution and Capital Accumulation*Dimitrios Varvarigos () No 11/05, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester Abstract: The current paper offers a new explanation on the emergence of threshold effects and multiple equilibria, for which the high (low) income equilibrium is associated with high (low) environmental quality. This new explanation rests on endogenous technological choice in the presence of environmental taxation – an idea whose foundations find strong support from existing empirical evidence. Thus, the interactions between environmental policy and technology choice, within a framework that accounts for the health effects of pollution, can explain some of the observed differences in income, life expectancy and environmental quality among countries. Keywords: Pollution; Capital accumulation; Endogenous longevity; Multiple equilibria (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:lec:leecon:11/05 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester School of Business, University of Leicester, University Road. Leicester. LE1 7RH. UK Provider-Homepage: https://le.ac.uk/school-of-business. Contact information at EDIRC. |
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