Theoretical Economics Letters

Volume 4, Issue 7 (August 2014)

ISSN Print: 2162-2078   ISSN Online: 2162-2086

Google-based Impact Factor: 1.19  Citations  h5-index & Ranking

Optimal Environmental Policy under Endogenous Terms of Trade and Economic Growth

HTML  Download Download as PDF (Size: 2445KB)  PP. 608-611  
DOI: 10.4236/tel.2014.47076    3,913 Downloads   4,858 Views  Citations

ABSTRACT

The aim of this work is to depict the main characteristics of the optimal environmental policy under endogenous terms of trade and economic growth. Here, endogenous terms of trade are inferred from the price of an aggregate consumption good. Our results show that when emissions of a global pollutant affect the environment and, therefore, the utility of the economic agents, the optimal policy consists in a pollution tax on production.

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Sampaolesi, A. (2014) Optimal Environmental Policy under Endogenous Terms of Trade and Economic Growth. Theoretical Economics Letters, 4, 608-611. doi: 10.4236/tel.2014.47076.

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