We develop a general equilibrium model to study the transition from an established polluting to a new clean energy technology. Therefore, we consider two distinctive features: (i) the creation of new productive capital exhibits a timeto-build property, and (ii) the social and individual rates of...

We analyze the optimal dynamic scale and structure of a two-sector-economy, where each sector produces one consumption good and one specific pollutant. Both pollutants accumulate at different rates to stocks that damage the natural environment, which acts as a dynamic driving force for the...

In this paper I study the optimal control path for a (capital or pollution) stock which accumulates time with a lag to its control. It is shown that the optimal control path is non-monotonic and cyclical in general, but it is monotonic if the objective function is additively separable in the...

We develop a general equilibrium model to study the transition from an established polluting to a new clean energy technology. Therefore, we consider two distinctive features: (i) the creation of new productive capital exhibits a timeto-build property, and (ii) the social and individual rates of...