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Geographic environmental Kuznets curves: The optimal growth linear-quadratic case

Raouf Boucekkine (), Giorgio Fabbri (), Salvatore Federico () and Fausto Gozzi
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Salvatore Federico: LPMA - Laboratoire de Probabilités et Modèles Aléatoires - UPMC - Université Pierre et Marie Curie - Paris 6 - UPD7 - Université Paris Diderot - Paris 7 - CNRS - Centre National de la Recherche Scientifique

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Abstract: We solve a linear-quadratic model of a spatio-temporal economy using a polluting one-input technology. Space is continuous and heterogenous: locations di er in productivity, nature self-cleaning technology and environmental awareness. The unique link between locations is transboundary pollution which is modelled as a PDE di usion equation. The spatio-temporal functional is quadratic in local consumption and linear in pollution. Using a dynamic programming method adapted to our in nite dimensional setting, we solve the associated optimal pollution. We show that optimal emissions will decrease at given location if and only if local productivity is larger than a threshold which depends both on the local pollution absorption capacity and environmental awareness. Furthermore, we numerically explore the relationship between the spatial optimal distributions of production and (asymptotic) pollution in order to uncover possible (geographic) Environmental Kuznets Curve cases.

Keywords: Growth; geography; transboundary pollution; in nite dimensional optimal control problems 1. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 2018-05-09
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01795160
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Working Paper: Geographic Environmental Kuznets Curves: The Optimal Growth Linear-Quadratic Case (2018) Downloads
Working Paper: Geographic environmental Kuznets curves: The optimal growth linear-quadratic case (2018) Downloads
Working Paper: Geographic Environmental Kuznets Curves: The Optimal Growth Linear-Quadratic Case (2018) Downloads
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