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UMass Amherst Economics Working Papers
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.
UMass Amherst Open Access Policy
Coram, Alex, "The Long Run Dynamics of Economic Growth with Environmental Catastrophe" (2018). UMass Amherst Economics Working Papers. 257.
Retrieved from https://scholarworks.umass.edu/econ_workingpaper/257