Fernández Casillas, Mª Esther and Pérez Sánchez, Rafaela María and Ruiz Andújar, Jesús (2003) Environmental fiscal polices might be ineffective to control pollution. [Working Paper or Technical Report]
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Official URL: http://eprints.ucm.es/7684/
Abstract
In a one sector growth model with pollution in the utility function, the competitive equilibrium can be indeterminate for plausible values of the intertemporal substitution elasticity of consumption and under constant returns to scale. The tax rate on pollution does not enter the condition characterizing indeterminacy. This means that the government is not able to control emissions in the economy by using environmental policies. Non-separability between private consumption and pollution in the utility function is crucial for this result.
| Item Type: | Working Paper or Technical Report |
|---|---|
| Uncontrolled Keywords: | Growth model, Control emissions, Environmental policies |
| Subjects: | Social sciences > Economics > Econometrics |
| Series Name: | Documentos de trabajo de Instituto Complutense de Análisis Económico (ICAE) |
| Volume: | 2003 |
| Number: | 0307 |
| ID Code: | 7684 |
| References: |
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| Deposited On: | 11 Mar 2008 |
| Last Modified: | 04 Apr 2013 12:06 |
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