Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302167 
Year of Publication: 
2023
Series/Report no.: 
Working Papers in Economics and Management No. 09-2023
Publisher: 
Bielefeld University, Faculty of Business Administration and Economics, Bielefeld
Abstract: 
In this paper we study a basic model of economic growth where we integrate a zero-dimensional energy balance model of the Earth. The albedo of the Earth is the piecewise smooth function of the average surface temperature, thus, taking into account possible feedback effects of a higher temperature. The analysis of the model shows that the model with a jump in the albedo has either a unique regular steady-state or two regular steady-states. When the albedo is described by a piece-wise linear function there exists a non-degenerate pseudo-equilibrium where the temperature stabilizes at the upper switching point of albedo increase with a strictly positive level of consumption.
Subjects: 
Piece-wise smooth system
climate change
optimal control
JEL: 
Q54
C61
O41
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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