A simple degrowth model

Marc Germain ()
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Marc Germain: LEM-CNRS (UMR 9221), Université de Lille 3

No 2016.21, Working Papers from FAERE - French Association of Environmental and Resource Economists

Abstract: With the help of a growth model à la Ramsey with a natural resource and pollution and relying on the postulates of ecological economics, this paper studies the impact of voluntary degrowth policies on production and welfare. The instrument of these policies is a tax levied on the natural resource. These policies are assumed to be applied by the public authorities after the downturn of the households'utility function due to the increase of pollution. With respect to the laissez-faire situation, their impact is to simultaneously decrease production and pollution on the one hand and increase welfare on the other. A delayed reaction of the public authorities after the turnover of the households'utility function implies a higher tax rate on the resource during the first periods. If the authorities'preference for the future is higher, then welfare gains from the degrowth policy are lower for the first generations of the dynasty and higher for the later. The impact of technical progress saving the resource or improving the pollution treatment is also analysed.

Keywords: degrowth; ecological econonomic; steady state economics; pollution tax (search for similar items in EconPapers)
JEL-codes: O44 O49 Q57 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2016-06
New Economics Papers: this item is included in nep-env
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http://faere.fr/pub/WorkingPapers/Germain_FAERE_WP2016.21.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:fae:wpaper:2016.21

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