Kempf, Hubert; Rossignol, Stéphane - Fondazione ENI Enrico Mattei (FEEM) - 2005
political economy perspective. We consider an endogenous growth economy, where growth generates pollution and a deterioration of … the environment. Public expenditures may either be devoted to supporting growth or abating pollution. The decision over …, the less she will tax and devote resources to the environment, preferring to support growth. …