Green Spending Reforms, Growth and Welfare with Endogenous Subjective Discounting
Evangelos Dioikitopoulos () and
Sarantis Kalyvitis ()
DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade
This paper studies optimal fiscal policy, in the form of taxation and the allocation of tax revenues between infrastructure and environmental investment, in a general-equilibrium growth model with endogenous subjective discounting. A green spending reform, defined as a reallocation of government expenditures towards the environment, can procure a double dividend by raising growth and improving environmental conditions, although the environment does not impact the production technology. Also, endogenous Ramsey and growth-maximizing policies eliminate the possibility of an 'environmental and economic poverty trap'. Finally, we examine the optimal response of the Ramsey government to greener preferences.
Keywords: endogenous time preference; growth; environmental quality; second-best fiscal policies (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Journal Article: GREEN SPENDING REFORMS, GROWTH, AND WELFARE WITH ENDOGENOUS SUBJECTIVE DISCOUNTING (2015)
Working Paper: Green Spending Reforms, Growth and Welfare with Endogenous Subjective Discounting
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:deg:conpap:c017_045
Access Statistics for this paper
More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Series data maintained by Jan Pedersen ().