Economics Department Working Paper Series
Working Paper Number
2018-20
Publication Date
2018
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 show 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.
DOI
https://doi.org/10.7275/13490451
License
UMass Amherst Open Access Policy
Recommended Citation
Coram, Alex, "The Long Run Dynamics of Economic Growth with Environmental Catastrophe" (2018). UMass Amherst Economics Working Papers. 257.
https://doi.org/10.7275/13490451