Optimal dynamic scale and structure of a multi-pollution economy

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Optimal dynamic scale and structure of a multi-pollution economy. / Baumgärtner, Stefan; Jöst, Frank; Winkler, Ralph.
In: Ecological Economics, Vol. 68, No. 4, 15.02.2009, p. 1226-1238.

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Baumgärtner S, Jöst F, Winkler R. Optimal dynamic scale and structure of a multi-pollution economy. Ecological Economics. 2009 Feb 15;68(4):1226-1238. doi: 10.1016/j.ecolecon.2008.08.016

Bibtex

@article{232849b53a374055945de92fec88310d,
title = "Optimal dynamic scale and structure of a multi-pollution economy",
abstract = "We analyze the optimal dynamic scale and structure of a two-sector-economy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at different rates to stocks which damage the natural environment. This acts as a dynamic driving force for the economy. Our analysis shows that along the optimal time path (i) the time scale of economic dynamics is mainly determined by the lifetime of pollutants, their instantaneous harmfulness and the discount rate; (ii) economic scale and structure, as well as resulting welfare, may be non-monotonic, and (iii) environmental damage may exhibit an inverted U-shape form. These results raise important questions about the optimal design of environmental policies in a multi-pollution economy. We suggest a system of dynamic Pigouvian emission taxes, each of which should be levied specifically on one particular pollutant. We show that the optimal time path of each tax level is determined by the characteristics not only of that particular pollutant but also of all other pollutants. {\textcopyright} 2008 Elsevier B.V. All rights reserved.",
keywords = "Sustainability sciences, Management & Economics, Dynamic economy–environment interaction, Multi-pollutant emissions, Non-monotonic development, Optimal scale, Stock pollution, Structural change, Time scale, Dynamic economy-environment interaction, Multi-pollutant emissions, Non-monotonic development, Optimal scale, Stock pollution, Structural change, Time scale, Economics, Dynamic economy–environment interaction, Multi-pollutant emissions, Non-monotonic development, Optimal scale, Stock pollution, Structural change, Time scale",
author = "Stefan Baumg{\"a}rtner and Frank J{\"o}st and Ralph Winkler",
note = "Participation and Evaluation for Sustainable River Basin Governance",
year = "2009",
month = feb,
day = "15",
doi = "10.1016/j.ecolecon.2008.08.016",
language = "English",
volume = "68",
pages = "1226--1238",
journal = "Ecological Economics",
issn = "0921-8009",
publisher = "Elsevier B.V.",
number = "4",

}

RIS

TY - JOUR

T1 - Optimal dynamic scale and structure of a multi-pollution economy

AU - Baumgärtner, Stefan

AU - Jöst, Frank

AU - Winkler, Ralph

N1 - Participation and Evaluation for Sustainable River Basin Governance

PY - 2009/2/15

Y1 - 2009/2/15

N2 - We analyze the optimal dynamic scale and structure of a two-sector-economy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at different rates to stocks which damage the natural environment. This acts as a dynamic driving force for the economy. Our analysis shows that along the optimal time path (i) the time scale of economic dynamics is mainly determined by the lifetime of pollutants, their instantaneous harmfulness and the discount rate; (ii) economic scale and structure, as well as resulting welfare, may be non-monotonic, and (iii) environmental damage may exhibit an inverted U-shape form. These results raise important questions about the optimal design of environmental policies in a multi-pollution economy. We suggest a system of dynamic Pigouvian emission taxes, each of which should be levied specifically on one particular pollutant. We show that the optimal time path of each tax level is determined by the characteristics not only of that particular pollutant but also of all other pollutants. © 2008 Elsevier B.V. All rights reserved.

AB - We analyze the optimal dynamic scale and structure of a two-sector-economy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at different rates to stocks which damage the natural environment. This acts as a dynamic driving force for the economy. Our analysis shows that along the optimal time path (i) the time scale of economic dynamics is mainly determined by the lifetime of pollutants, their instantaneous harmfulness and the discount rate; (ii) economic scale and structure, as well as resulting welfare, may be non-monotonic, and (iii) environmental damage may exhibit an inverted U-shape form. These results raise important questions about the optimal design of environmental policies in a multi-pollution economy. We suggest a system of dynamic Pigouvian emission taxes, each of which should be levied specifically on one particular pollutant. We show that the optimal time path of each tax level is determined by the characteristics not only of that particular pollutant but also of all other pollutants. © 2008 Elsevier B.V. All rights reserved.

KW - Sustainability sciences, Management & Economics

KW - Dynamic economy–environment interaction

KW - Multi-pollutant emissions

KW - Non-monotonic development

KW - Optimal scale

KW - Stock pollution

KW - Structural change

KW - Time scale

KW - Dynamic economy-environment interaction

KW - Multi-pollutant emissions

KW - Non-monotonic development

KW - Optimal scale

KW - Stock pollution

KW - Structural change

KW - Time scale

KW - Economics

KW - Dynamic economy–environment interaction

KW - Multi-pollutant emissions

KW - Non-monotonic development

KW - Optimal scale

KW - Stock pollution

KW - Structural change

KW - Time scale

UR - http://www.scopus.com/inward/record.url?scp=58749116441&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/27d10848-e089-3b4a-ad89-7d29d83c17af/

U2 - 10.1016/j.ecolecon.2008.08.016

DO - 10.1016/j.ecolecon.2008.08.016

M3 - Journal articles

VL - 68

SP - 1226

EP - 1238

JO - Ecological Economics

JF - Ecological Economics

SN - 0921-8009

IS - 4

ER -