Abrupt Damages and Sustainability
Revue d'économie politique, 2019, vol. 129, issue 5, 861-875
In this paper, I show that the amount of the environmental damage due to abrupt events can be important for the sustainability of an economy. When the economy faces endogenous limit cycles or unstable behavior for a large parameter region for environmental damage, the Sustainable Development criterion, implying a non-decreasing path for utility is compromised. In addition, total factor productivity improvements are shown to help an economy respecting the Sustainable Development Criterion by avoiding limit cycles and unstable behavior in the long run. Classification JEL : O13, D81, Q2, Q54
Keywords: Abrupt damage; Occurrence Hazard; Limit Cycles; Hopf Bifurcation; TFP Growth (search for similar items in EconPapers)
JEL-codes: D81 O13 Q2 Q54 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cai:repdal:redp_295_0861
Access Statistics for this article
More articles in Revue d'économie politique from Dalloz
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().