Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192127 
Year of Publication: 
1995
Series/Report no.: 
Discussion Papers No. 143
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
The environmental drag is the cost to society of environmental constraints. This paper estimates the long-run environmental drag on the Norwegian economy. We employ a model called DREAM (dynamic resource / environmental applied model). This is an applied general equilibrium model extended to include important environmental linkages. After having explained the structure of our model, the paper presents macroeconomic effects, and impacts on growth and welfare of environmental constraints. To check robustness we perform a number of sensitivity analyses. Most of our results are remarkably robust to alternative assumptions. Contrary to widespread opinion, a low discount rate increases the environmental drag on welfare. Reducing the rate of technological progress will have similar effects.
Subjects: 
Environmental drag
dynamic CGE model
Norway.
JEL: 
D58
O41
Q29
Q39
Document Type: 
Working Paper
Document Version: 
Digitized Version

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