By Elke Moser, Willi Semmler, Gernot Tragler, Vladimir M. Veliov

ISBN-10: 3642540856

ISBN-13: 9783642540851

ISBN-10: 3642540864

ISBN-13: 9783642540868

The booklet provides new advancements within the dynamic modeling and optimization equipment in environmental economics and gives an incredible variety of functions facing the economics of typical assets, the affects of weather swap and of environmental pollutants, and respective coverage measures. The interrelationship among monetary actions and environmental caliber, the improvement of cleanser applied sciences, the change from fossil to renewable assets and the correct use of coverage tools play a big function alongside the trail in the direction of a sustainable destiny. organic, actual and fiscal methods are certainly desirous about the topic, and postulate the most modelling, simulation and decision-making instruments: the equipment of dynamic optimization and dynamic games.

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Such a difference appears because in the undirected growth case, the emissions reduction technology is exogenous and partially dissipates the effect of the productivity growth. As a result, the underestimation of the effect of technological invest- 28 A. Bondarev et al. Fig. 15 Economic dynamics for BaU scenarios ments by the household in the EBaU scenario leads to lower capital accumulation and, consequently, to lower environmental damages compared to the EDBaU scenario. In the latter case, emissions reduction intensity is rather low, especially for the dirty growth scenario in comparison to the exogenous reduction technology.

Geometrically, the latter assumption implies that the curve C3 shifts upwards after an increase in capital intensity. Let us first consider an increase in the total factor productivity by introducing a scale parameter a in the production function, aF (K, L) = Laf (k). The impact of an increase in total factor productivity will depend on the regime the economy follows in equilibrium. Regime 1. Zero-Maintenance Equilibrium In this regime, a small increase in a leads to an increase in k ∗ , w ∗ and w ∗ + r ∗ s im ∗ .

In the case of endogenous technology (EBaU), the difference is more drastic, since not only the influence of economic variables is neglected, but also the effect of technological variables on the environment. Technology influences the environment through productivity growth which boosts the emissions accumulation, while the household is unaware of this influence when determining its policy. As a result, the difference in dynamics between full information and informationally constrained scenarios is larger than for the exogenous model.

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Dynamic Optimization in Environmental Economics by Elke Moser, Willi Semmler, Gernot Tragler, Vladimir M. Veliov


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