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- W1763031940 abstract "The effects of an agreement such as the Kyoto Protocol, which implicitly imposes a ceiling on the stock of pollution, have recently been studied in Hotelling models. We add pollution and a ceiling to the endogenous growth model of cite{tsur2005scarcity} to study the effects of the ceiling on capital accumulation and research investments. The ceiling increases the scarcity of the exhaustible resource in the short run, which boosts backstop utilization. This implies that R&D becomes more beneficial compared with capital accumulation. How the short run development path of an economy is affected depends on its capital endowment or richness, respectively. Only economies which are neither too rich nor too poor may invest more into research. In the long run an economy with a ceiling follows basically the same long run development path as an economy without the ceiling." @default.
- W1763031940 created "2016-06-24" @default.
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- W1763031940 date "2013-10-14" @default.
- W1763031940 modified "2023-09-27" @default.
- W1763031940 title "Endogenous Growth with a Ceiling on the Stock of Pollution" @default.
- W1763031940 hasPublicationYear "2013" @default.
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