Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202953 
Year of Publication: 
2018
Series/Report no.: 
Working Paper No. 2018-20
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
Abstract: 
The purpose of this paper is to consider the dynamics of growth in a two state variable and two control variable model where the environment is taken as a constraint. This captures some elements of environmental problems not covered in the cost approach. It also captures the idea that the environment may be an absolute barrier or have a catastrophe boundary. It shows that, even though the environment is not a cost, it may be optimal to cut growth before the barrier is reached. It also shows that the technology of production has a strong non-linear affect on maximum attainable output.
JEL: 
O4
Q54
Q58
Document Type: 
Working Paper

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