Environmental resilience and economic growth: Command economy's optimization and environmental Kuznets curve

Yi-Chia Wang and Yih-chyi Chuang ()

Economic Modelling, 2011, vol. 28, issue 6, 2854-2861

Abstract: This paper constructs a two-sector environmental growth model with explicit mathematical derivation and economic intuition in a social planning economy. Through the optimal allocation of man-made capital between the production sector and the environmental sector, this paper shows that the trade-off between economic growth and environmental protection exists only when an economy deviates from its steady state. We also provide short-run transitions for both the whole economic system and individual control and state variables. In addition, technological progress in the production sector benefits economic growth rate while the improvement of technology in the environmental sector has only level effects on economic variables. This paper ends with a link between the theory and a hot empirical issue — the environmental Kuznets curve (EKC) hypothesis.

Keywords: Dynamic optimization; Environmental Kuznets curve; EKC; Growth model; Two-sector model (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S026499931100160X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:6:p:2854-2861

DOI: 10.1016/j.econmod.2011.06.028

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().