Implementing steady state efficiency in overlapping generations economies with environmental externalities

Nguyen Thang Dao and Julio Dávila

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We consider in this paper overlapping generations economies with polution resulting from both consumption and production. The competitive equilibrium steady state is compared to the optimal steady state from the social planner's viewpoint. We show that any competitive equilibrium steady state whose capital-labor ratio exceeds the golden rule ratio is dynamically inefficient. Moreover, the range of dynamically efficient steady states capital ratios increases with the effectiveness of the environment maintainance technology, and decreases for more polluting production technologies. We characterize some tax and transfer policies that decentralize as a competitive equilibrium outcome the social planner's steady state

Keywords: Overlapping generations; environmental externality; tax and transfer policy (search for similar items in EconPapers)
JEL-codes: D62 E21 H21 H41 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2010-12
New Economics Papers: this item is included in nep-dge and nep-env
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http://mse.univ-paris1.fr/pub/mse/CES2010/10104.pdf (application/pdf)

Related works:
Journal Article: Implementing Steady State Efficiency in Overlapping Generations Economies with Environmental Externalities (2014)
Working Paper: Implementing steady state efficiency in overlapping generations economies with environmental extranalities (2014)
Working Paper: Implementing steady state efficiency in overlapping generations economies with environmental externalities (2014)
Working Paper: Implementing Steady State Efficiency in Overlapping Generations Economies with Environmental Externalities (2014)
Working Paper: Implementing steady state efficiency in overlapping generations economies with environmental externalities (2011)
Working Paper: Implementing steady state efficiency in overlapping generations economies with environmental externalities (2010)
Working Paper: Implementing steady state efficiency in overlapping generations economies with environmental externalities (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:10104

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