𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Change of economic structure—Capital, knowledge, population and pollution

✍ Scribed by Wei-Bin Zhang

Publisher
Elsevier Science
Year
1996
Tongue
English
Weight
874 KB
Volume
7
Category
Article
ISSN
0960-0779

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✦ Synopsis

This paper proposes a nonlinear dynamic economic model with endogenous technological change, population, capital accumulation and pollutant accumulation. The system consists of two, industrial and environmental, sectors. The industrial sector produces goods with knowledge, labor, and capital as inputs under perfect competitive conditions, subject to the government's tax policy. The tax income is used by the environmental sector to employ labor and capital. We examine the effects of the environmental policy, knowledge accumulation efficiency and preference change on the environment. We show that the simple system has multiple equilibria and may exhibit permanent oscillations.

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