Abstract
We investigate the impact of environmental quality standards on the accumulation of two types of capital (“brown” vs. “green”) and the corresponding R&D investments in an endogenous growth model. We show that environmental regulation as economic policy instrument rather represses economic growth in the long run but fosters green R&D and the accumulation of green capital in the short run. In addition we show that subsidies may support a shift to a greener production and can be used to counteract against repressed accumulation of green capital.
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Moser, E., Prskawetz, A., Tragler, G. (2012). Optimal Controls in Models of Economic Growth and the Environment. In: Lirkov, I., Margenov, S., Waśniewski, J. (eds) Large-Scale Scientific Computing. LSSC 2011. Lecture Notes in Computer Science, vol 7116. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-29843-1_15
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DOI: https://doi.org/10.1007/978-3-642-29843-1_15
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-29842-4
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