Optimal growth when environmental quality is a research asset

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Standard

Optimal growth when environmental quality is a research asset. / Groth, Christian; Ricci, Francesco .

I: Research in Economics, Bind 65, Nr. 4, 2011, s. 340-352.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Groth, C & Ricci, F 2011, 'Optimal growth when environmental quality is a research asset', Research in Economics, bind 65, nr. 4, s. 340-352. https://doi.org/10.1016/j.rie.2011.01.005

APA

Groth, C., & Ricci, F. (2011). Optimal growth when environmental quality is a research asset. Research in Economics, 65(4), 340-352. https://doi.org/10.1016/j.rie.2011.01.005

Vancouver

Groth C, Ricci F. Optimal growth when environmental quality is a research asset. Research in Economics. 2011;65(4):340-352. https://doi.org/10.1016/j.rie.2011.01.005

Author

Groth, Christian ; Ricci, Francesco . / Optimal growth when environmental quality is a research asset. I: Research in Economics. 2011 ; Bind 65, Nr. 4. s. 340-352.

Bibtex

@article{6b84be8a0fb84647917b7fefcbbd22b6,
title = "Optimal growth when environmental quality is a research asset",
abstract = "We advance an original assumption whereby a good state of the environment positively affects labor productivity in R&D such that deteriorating environmental quality negatively impacts R&D. We study the implications of this assumption for the optimal solution in an R&D-based model of growth, where the use of a non-renewable resource generates pollution. We show that in such a case, it is socially optimal to postpone extraction, as opposed to the situation in which the environment has no effect on productivity in R&D. Furthermore, insofar as environmental quality declines and subsequently recovers, we find that it is optimal to re-allocate employment to R&D in line with productivity changes. If environmental quality recovers only partially from pollution, R&D effort optimally begins above its long-run level, then progressively declines to a minimum and eventually increases to its steady-state level.",
author = "Christian Groth and Francesco Ricci",
year = "2011",
doi = "10.1016/j.rie.2011.01.005",
language = "English",
volume = "65",
pages = "340--352",
journal = "Research in Economics",
issn = "1090-9443",
publisher = "Academic Press",
number = "4",

}

RIS

TY - JOUR

T1 - Optimal growth when environmental quality is a research asset

AU - Groth, Christian

AU - Ricci, Francesco

PY - 2011

Y1 - 2011

N2 - We advance an original assumption whereby a good state of the environment positively affects labor productivity in R&D such that deteriorating environmental quality negatively impacts R&D. We study the implications of this assumption for the optimal solution in an R&D-based model of growth, where the use of a non-renewable resource generates pollution. We show that in such a case, it is socially optimal to postpone extraction, as opposed to the situation in which the environment has no effect on productivity in R&D. Furthermore, insofar as environmental quality declines and subsequently recovers, we find that it is optimal to re-allocate employment to R&D in line with productivity changes. If environmental quality recovers only partially from pollution, R&D effort optimally begins above its long-run level, then progressively declines to a minimum and eventually increases to its steady-state level.

AB - We advance an original assumption whereby a good state of the environment positively affects labor productivity in R&D such that deteriorating environmental quality negatively impacts R&D. We study the implications of this assumption for the optimal solution in an R&D-based model of growth, where the use of a non-renewable resource generates pollution. We show that in such a case, it is socially optimal to postpone extraction, as opposed to the situation in which the environment has no effect on productivity in R&D. Furthermore, insofar as environmental quality declines and subsequently recovers, we find that it is optimal to re-allocate employment to R&D in line with productivity changes. If environmental quality recovers only partially from pollution, R&D effort optimally begins above its long-run level, then progressively declines to a minimum and eventually increases to its steady-state level.

U2 - 10.1016/j.rie.2011.01.005

DO - 10.1016/j.rie.2011.01.005

M3 - Journal article

VL - 65

SP - 340

EP - 352

JO - Research in Economics

JF - Research in Economics

SN - 1090-9443

IS - 4

ER -

ID: 33853269