IDEAS home Printed from https://ideas.repec.org/a/spr/envpol/v6y2004i1d10.1007_bf03353930.html
   My bibliography  Save this article

Global warming in a basic endogenous growth model

Author

Listed:
  • Alfred Greiner

    (Bielefeld University)

Abstract

This article studies the relation between anthropogenic global warming and economic growth. It is assumed that deviations from the preindustrial average global surface temperature negatively affect aggregate output and utility. The government levies a tax on output and a tax on greenhouse gases. Assuming a basic endogenous growth model, the effects of varying the tax rates are analyzed as concerns economic growth, economic welfare, and the rise in average global surface temperature. Using simulations, it is demonstrated that higher emission taxes may raise economic growth and welfare while reducing the extent of global warming. In addition, situations exist where a rise in emission taxes reduces economic growth but raises welfare. Furthermore, the social optimum economies with cleaner technologies have fewer emissions than economies with fewer clean production technologies.

Suggested Citation

  • Alfred Greiner, 2004. "Global warming in a basic endogenous growth model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 6(1), pages 49-73, March.
    • Handle: RePEc:spr:envpol:v:6:y:2004:i:1:d:10.1007_bf03353930
    DOI: 10.1007/BF03353930
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/BF03353930
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/BF03353930?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ligthart, Jenny E. & van der Ploeg, Frederick, 1994. "Pollution, the cost of public funds and endogenous growth," Economics Letters, Elsevier, vol. 46(4), pages 339-349, December.
    2. Frank Hettich, 2000. "Economic Growth and Environmental Policy," Books, Edward Elgar Publishing, number 2086.
    3. Søren Nielsen & Lars Pedersen & Peter Sørensen, 1995. "Environmental policy, pollution, unemployment, and endogenous growth," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 185-205, August.
    4. Lans Bovenberg, A. & Smulders, Sjak, 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Journal of Public Economics, Elsevier, vol. 57(3), pages 369-391, July.
    5. Hackl, Franz & Pruckner, Gerald J., 2003. "How global is the solution to global warming?," Economic Modelling, Elsevier, vol. 20(1), pages 93-117, January.
    6. Engelbert Dockner & Gustav Feichtinger, 1991. "On the optimality of limit cycles in dynamic economic systems," Journal of Economics, Springer, vol. 53(1), pages 31-50, February.
    7. Buonanno, Paolo & Carraro, Carlo & Galeotti, Marzio, 2003. "Endogenous induced technical change and the costs of Kyoto," Resource and Energy Economics, Elsevier, vol. 25(1), pages 11-34, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alfred Greiner, 2004. "Global warming in a basic endogenous growth model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 6(1), pages 49-73, March.
    2. Marsiliani, L. & Renstrom, T.I., 2000. "Inequality, Environmental Protection and Growth," Discussion Paper 2000-34, Tilburg University, Center for Economic Research.
    3. George Economides & Apostolis Philippopoulos, 2003. "Are Nash Tax Rates too Low or Too High? The Role of Endogenous Growth in Models with Public Goods," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(1), pages 37-53, January.
    4. Dagmar Nelissen & Till Requate, 2007. "Pollution-reducing and resource-saving technological progress," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(1), pages 5-44.
    5. Laura Marsiliani & Thomas Renstrom, 2002. "Inequality, Environmental Protection and Growth," Wallis Working Papers WP35, University of Rochester - Wallis Institute of Political Economy.
    6. Greiner, Alfred & Semmler, Willi, 2005. "Economic growth and global warming: A model of multiple equilibria and thresholds," Journal of Economic Behavior & Organization, Elsevier, vol. 57(4), pages 430-447, August.
    7. Marzio Galeotti, 2003. "Environment and Economic Growth: Is Technical Change the Key to Decoupling?," Working Papers 2003.90, Fondazione Eni Enrico Mattei.
    8. Hettich, Frank, 1997. "Growth effects of a revenue neutral environmental tax reform," Discussion Papers, Series II 351, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    9. Chu, Hsun & Lai, Ching-chong, 2014. "Abatement R&D, market imperfections, and environmental policy in an endogenous growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 41(C), pages 20-37.
    10. Chen, Jhy-hwa & Shieh, Jhy-yuan & Chang, Juin-jen & Lai, Ching-chong, 2009. "Growth, welfare and transitional dynamics in an endogenously growing economy with abatement labor," Journal of Macroeconomics, Elsevier, vol. 31(3), pages 423-437, September.
    11. George Economides & Apostolis Philippopoulos, 2000. "Pollution and Resource Extraction: Do they Matter for the Dynamics of Growth?," CESifo Working Paper Series 361, CESifo.
    12. Renström, Thomas I & Marsiliani, Laura, 2003. "Inequality, Environmental Protection and Growth," CEPR Discussion Papers 3754, C.E.P.R. Discussion Papers.
    13. Shieh, Jhy-yuan & Chen, Jhy-hwa & Chang, Shu-hua & Lai, Ching-chong, 2014. "Environmental consciousness, economic growth, and macroeconomic instability," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 151-160.
    14. Hettich, Frank & Svane, Minna Selene, 1998. "Environmental policy in a two sector endogenous growth model," Discussion Papers, Series I 290, University of Konstanz, Department of Economics.
    15. Barthel, Jens, 2007. "Environmental policy in dynamic models with pollution by consumers: The greening and blackening of preferences," MPRA Paper 8230, University Library of Munich, Germany.
    16. Marsiliani, L. & Renstrom, T.I., 2000. "Inequality, Environmental Protection and Growth," Other publications TiSEM 4b2514ec-6e0c-448e-901a-a, Tilburg University, School of Economics and Management.
    17. Barthel, Jens, 2005. "Environmental policy in dynamic models: The impact of the elasticity of substitution if consumers pollute," MPRA Paper 8228, University Library of Munich, Germany.
    18. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November.
    19. Hyun Park & Apostolis Philippopoulos, 2016. "Environmental Ramsey Policy and Sustainable Balanced Growth," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 488-501, May.
    20. Heinzel, Christoph & Winkler, Ralph, 2006. "Gradual versus structural technological change in the transition to a low-emission energy industry: How time-to-build and differing social and individual discount rates influence environmental and tec," Dresden Discussion Paper Series in Economics 09/06, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.

    More about this item

    Keywords

    Global warming; Greenhouse gases; Emission tax; Balanced growth path; JEL: E60; 041; Q28;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:envpol:v:6:y:2004:i:1:d:10.1007_bf03353930. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.