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Strategic interactions and heterogeneity in a overlapping generations model with negative environmental externalities

Angelo Antoci, Ahmad Naimzada () and Mauro Sodini ()

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze an overlapping generations model where individuals’ welfare depends on the stock of a free access environmental good E and on the consumption C of a private good. We assume that the production process of the private good depletes the natural resource but that specific investments alleviate these damages. In such context, we show that strategic behaviour and heterogeneity in preferences may be a source of complex dynamics.

Keywords: Heterogeneous agents; environmental externalities; overlapping generations models. (search for similar items in EconPapers)
JEL-codes: C61 Q20 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cse, nep-dge, nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18221

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