Air Pollution, Allocation of Property Rights, Environmental Issues and Theoretical Overlapping Generations General Equilibrium Modelling

• Authors: Jules Tchouto
• Languages of publication: EN

Abstracts

EN

This paper presents how the environment - considered as a production factor - and other related assumptions can be introduced step by step in a theoretical Overlapping Generations General Equilibrium Model (OLG - GE). The first part shows the behaviors of agents with pollution in the absence of an environmental policy. The second part emphasizes a Greenhouse Gas abatement policy through the allocation of Pollution Permit ownership, which allows property rights on the environment; here we assume a three-factor model: Capital - Labor - Environment. The last part of of the paper highlights one theoretical property about the allocation of pollution permits within a OLG-GE steady state with the environment. To our knowledge, it is the first time that the aforementioned property has been characterized.

Keywords

EN

Environment Property Right; Pollution Permit Ownership; Environmental Maintenance; Air Pollution; OLG-GE model; Intergenerational Equity

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2011
• Volume: 6
• Issue: 1
• Pages: 23-36

Dates

published

2011-04-01

online

2011-06-03

Contributors

author

Jules Tchouto

• University of Rouen, France

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Identifiers

DOI

10.2478/v10033-011-0003-1