We analyze an overlapping generations model in which pollution arises, in an accumulative way, from production …. Households do not care directly about the environment, however pollution makes them incur health costs when they are elderly. We … show that the presence of pollution makes the economy more likely to be dynamically inefficient. For these cases we analyze …

In a one sector growth model with pollution in the utility function, the competitive equilibrium can be indeterminate … tax rate on pollution does not enter the condition characterizing indeterminacy. This means that the government is not … pollution in the utility function is crucial for this result. …

We study the dynamic properties of an endogenous growth model with pollution in which the government can control the … pollution through distorting taxes on the pollutant firms and through public abatement activities. First, we characterize the … found (one with a low level of pollution and the other with a high level) both of which can be locally indeterminate …