A model of optimal stoical growth with pollution

Bertrand Crettez () and Naila Hayek ()
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Bertrand Crettez: Université Paris-Panthéon-Assas, CRED
Naila Hayek: Université Paris-Panthéon-Assas, CRED

Journal of Economics, 2025, vol. 146, issue 3, No 1, 317 pages

Abstract: Abstract We study a model of optimal growth in a discrete-time, infinite horizon setting. In this model, a consumption good is produced according to a linear technology that employs labor and causes polluting emissions. We depart from the literature by introducing a stoical effort. The higher the stoical effort, the lower the advantages derived from consumption. As a result, when the pollution stock is high, it is optimal to exert a stoical effort, which makes consumption less enjoyable and results in a decrease in pollution. When the pollution stock is low, there is no stoical effort and the optimal growth coincides with the optimal path of the standard optimal growth model.

Keywords: Optimal growth; Stoical effort; Pollution; H23; O44; 041; Q57; Q55 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:146:y:2025:i:3:d:10.1007_s00712-025-00918-w

DOI: 10.1007/s00712-025-00918-w

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