Nicolas Clootens
AMSE
Growth in an OLG economy with polluting non-renewable resources
Venue
IBD Salle 16
Îlot Bernard du Bois - Salle 16
AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille
Date(s)
Thursday, December 6 2018| 12:30pm to 1:45pm
Contact(s)
Mathieu Faure: mathieu.faure[at]univ-amu.fr
Gaëtan Fournier: gaetan.fournier[at]univ-amu.fr
Abstract
This paper analyses the effects of flow pollution implied by the use of nonrenewable resources on overlapping economies. Notably, it shows that, on the balanced growth path, flow pollution reduces the resource use and thus increases the ability of an economy to sustain a non-decreasing consumption path. In addition, the paper shows that the optimal allocation may be decentralized using tax on resource use and transfers.