Moser, E., Fürnkranz-Prskawetz, A., & Tragler, G. (2012). Optimal Controls in Models of Economic Growth and the Environment. In I. Lirkov, S. Margenov, & J. Wasniewski (Eds.), Large-Scale Scientific Computing: 8th International Conference, LSSC 2011 (pp. 139–146). Springer Verlag. https://doi.org/10.1007/978-3-642-29843-1_15
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Book Title:
Large-Scale Scientific Computing: 8th International Conference, LSSC 2011
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Abstract:
We investigate the impact of environmental quality standards on the accumulation of two types of capital ("brown" vs. "green") and the corresponding R&D investments in an endogenous growth model. We show that environmental regulation as economic policy instrument rather represses economic growth in the long run but fosters green R&D and the accumulation of green capital in the short run. In addition we show that subsidies may support a shift to a greener production and can be used to counteract against repressed accumulation of green capital.
