Pollution Accumulation and Endogenous Growth in a Sustainable Equilibrium

Yong Jin Kim
Additional contact information
Yong Jin Kim: Dongduck Women's University

Korean Economic Review, 1996, vol. 12, issue 2, 99-112

Abstract: This paper presents an endogenous growth model, with a feature of pollution accumulated affecting production efficiency and preference altogether. This model presents the links between pollution level, economic growth, government policy and preference toward pollution. With this model, the following three implications are derived: ( 1) As the government authority takes a tougher environmental measure, the pollution level, economic growth rate and R&D share in GNP for a less polluting energy source decrease. However, with this tougher policy, the optimal tax rate to finance environmental measures and pollution abatement spending share in GNP increase. ( 2) The countries with higher time preference rate show less pollution level, lower economic growth rate, higher abatement spending share and lower R&D spending share in income. (3) With a minimal use of calibration about the functions relating pollution and economic growth, I find that the relative shadow price of economic growth rate, with respect to one percent increase of pollution level accumulated, is very high over the broad range of parameter values.

Date: 1996
References: Add references at CitEc
Citations:

Downloads: (external link)
http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-199612-12-2-05.pdf (application/pdf)

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:kea:keappr:ker-199612-12-2-05

Access Statistics for this article

Korean Economic Review is currently edited by Kyung Hwan Baik

More articles in Korean Economic Review from Korean Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by KEA ().