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. © 2012 Springer-Verlag.
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CITATION STYLE
Moser, E., Prskawetz, A., & Tragler, G. (2012). Optimal controls in models of economic growth and the environment. In Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics) (Vol. 7116 LNCS, pp. 139–146). https://doi.org/10.1007/978-3-642-29843-1_15
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