EconPapers    
Economics at your fingertips  
 

Environment, Growth and Fiscal and Monetary Policies

Joao Ricardo Faria ()

Studies in Economics from School of Economics, University of Kent

Abstract: This paper investigates whether monetary and fiscal policies, such as lump-sum taxes and monetization of pubic deficit, have environmental impacts. We address this question extending the neoclassical monetary growth model. We include a state equation for natural resources, and consider natural resources as an input in the production function. Fiscal policy, through public spending, always has environmental impact. Monetary policy affects the environment if money is considered as a device to reduce transactions costs or as necessary to buy goods according to cash-in-advance models. However, the qualitative impact of both policies on the environment cannot be determined. All results depend on the effect of capital on the natural resources dynamics. The model provides a framework which relates public spending and inflation with environment.

Keywords: Environment; Inflation; Growth (search for similar items in EconPapers)
JEL-codes: E52 E62 Q28 (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: Track citations by RSS feed

Published in Economic Modelling, 1998, 15, pp.113-123

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ukc:ukcedp:9616

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Studies in Economics from School of Economics, University of Kent School of Economics, University of Kent, Canterbury, Kent, CT2 7FS.
Bibliographic data for series maintained by Tracey Girling ().

 
Page updated 2021-04-01
Handle: RePEc:ukc:ukcedp:9616