We investigate a closed economy in which the production depends essentially on physical capital, natural capital and labor. Contrary to the standard literature, we assume that the labor growth rate is non constant but variable over time. We show that the economy is sustainable in the long run if human activities have a net zero or positive effect on the environment. Moreover, for any given tax rate (or MPC, i.e. marginal propensity to consume), we derive the set of sustainable MPCs (or tax rates).

Environment and sustainable growth in a two-sector model with variable population growth rate

FERRARA, Massimiliano;
2009-01-01

Abstract

We investigate a closed economy in which the production depends essentially on physical capital, natural capital and labor. Contrary to the standard literature, we assume that the labor growth rate is non constant but variable over time. We show that the economy is sustainable in the long run if human activities have a net zero or positive effect on the environment. Moreover, for any given tax rate (or MPC, i.e. marginal propensity to consume), we derive the set of sustainable MPCs (or tax rates).
2009
environment, growth model
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.12318/5413
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