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ENVIRONMENTAL PROTECTION AND ECONOMIC GROWTH

Vladimir Teles () and Ronaldo A. Arraes

Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32nd Brazilian Economics Meeting] from ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics]

Abstract: This paper explores the link between an environmental policy and economic growth employing an extension of the Neoclassical Growth Model. We include a state equation to renewable natural resources, and consider natural resources as a component of the aggregate productivity. It is assumed that the change of the environmental regulations induces costs and that economic agents also derive some utility from stock capital accumulation vis-`a-vis environment. Using the Hopf bifurcation theorem, it can be shown that cyclical environmental policy strategies are optimal, providing a theoretical support to the Environmental Kuznets Curve.

JEL-codes: C61 C62 D62 (search for similar items in EconPapers)
Date: 2004
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http://www.anpec.org.br/encontro2004/artigos/A04A044.pdf (application/pdf)

Related works:
Working Paper: Environmental protection and economic growth (2009) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:anp:en2004:044

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