Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68885
Authors: 
Hettich, Frank
Svane, Minna Selene
Year of Publication: 
1998
Series/Report no.: 
Diskussionsbeiträge: Serie 1, Fakultät für Wirtschaftswissenschaften und Statistik, Universität Konstanz 290
Abstract: 
This paper analyses policy measures within a two sector endogenously growing economy with pollution. Pollution is either generated by production or by the use of physical capital in production, and can be reduced by public abatement activities. In this generalized Uzawa-Lucas model, the effects of fiscal policy are derived for all core variables and ratios. In addition, the optimal taxation rules are derived. If a pollution tax is not available it turns out that a first best solution may be reached by use of factor income taxation. Additionally, the effects and the possibility of environmental policy are complemented for a small open economy.
Subjects: 
endogenous growth
environmental externality
optimal taxation
international capital mobility
JEL: 
D62
O41
Q28
F43
Document Type: 
Working Paper

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