Optimal Growth with Polluting Waste and Recycling - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2015

Optimal Growth with Polluting Waste and Recycling

Résumé

We study an optimal AK-like model of capital accumulation and growth in the presence of a negative environmental externality in the tradition of Stokey (1998). Both production and consumption activities generate polluting waste. The economy exerts a recycling effort to reduce the stock of waste. Recycling also generates income, which is fully devoted to capital accumulation. The whole problem amounts to choosing the optimal control paths for consumption and recycling to maximize a social welfare function that notably includes the waste stock and disutility from the recycling effort. We provide a mathematical analysis of both the asymptotic behavior of the optimal trajectories and the shape of transition dynamics. Numerical exercises are performed to illustrate the analysis and to highlight some of the economic implications of the model.
Fichier principal
Vignette du fichier
WP 2015 - Nr 13.pdf (827.04 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

halshs-01126636 , version 1 (06-03-2015)

Identifiants

  • HAL Id : halshs-01126636 , version 1

Citer

Raouf Boucekkine, Fouad El Ouardighi. Optimal Growth with Polluting Waste and Recycling. 2015. ⟨halshs-01126636⟩
306 Consultations
211 Téléchargements

Partager

Gmail Facebook X LinkedIn More