Habit formation in an endogenous growth model with pollution abatement activities |
| |
Authors: | Masako Ikefuji |
| |
Institution: | (1) Fondazione Eni Enrico Mattei, Corso Magenta 63, 20123 Milano, Italy |
| |
Abstract: | This paper studies how habit formation in consumption affects pollution abatement activities and the steady-state growth rate,
in the context of an endogenous growth model in which agents derive disutility from the habit stock and pollution. The paper
also examines how the effect of technological change in abatement on the optimal growth rate is enhanced or weakened by habit
formation. We show that if agents persist in and care about their habits, sustained growth is only possible with rapid technological
progress.
|
| |
Keywords: | Habit formation Abatement cost and benefit Technological change |
本文献已被 SpringerLink 等数据库收录! |