IDEAS home Printed from https://ideas.repec.org/h/spr/dymchp/978-3-642-02132-9_5.html
   My bibliography  Save this book chapter

Optimal Economic Growth Under Stochastic Environmental Impact: Sensitivity Analysis

In: Dynamic Systems, Economic Growth, and the Environment

Author

Listed:
  • Elena Rovenskaya

    (International Institute for Applied Systems Analysis (IIASA))

Abstract

In this work we present an approach toward the sensitivity analysis of optimal economic growth to a negative environmental impact driven by random natural hazards that damage the production output. We use a simplified model of the GDP growth. We assume that production leads to the increase of the atmospheric GHG provided investment in cleaning is insufficient. The hypothesis of the Poisson probability distribution of the frequency of natural hazards is used at the this research stage. We apply the standard utility function—the discounted integral consumption and construct an optimal investment policy in production and cleaning together with optimal GDP trajectories. We calibrate the model in the global scale and analyze the sensitivity of obtained optimal growth scenarios with respect to uncertain parameters of the Poisson distribution.

Suggested Citation

  • Elena Rovenskaya, 2010. "Optimal Economic Growth Under Stochastic Environmental Impact: Sensitivity Analysis," Dynamic Modeling and Econometrics in Economics and Finance, in: Jesús Crespo Cuaresma & Tapio Palokangas & Alexander Tarasyev (ed.), Dynamic Systems, Economic Growth, and the Environment, pages 79-107, Springer.
    • Handle: RePEc:spr:dymchp:978-3-642-02132-9_5
    DOI: 10.1007/978-3-642-02132-9_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elena Rovenskaya, 2011. "One-step Optimization Model of Warming-driven Damage of Economic Growth," DEGIT Conference Papers c016_062, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Orlov, Sergey & Rovenskaya, Elena, 2022. "Optimal transition to greener production in a pro-environmental society," Journal of Mathematical Economics, Elsevier, vol. 98(C).

    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:dymchp:978-3-642-02132-9_5. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.