Fernández, Esther; Pérez, Rafaela; Ruiz, Jesús - In: Journal of Economic Dynamics and Control 36 (2012) 11, pp. 1700-1717
We illustrate that the existence of the environmental Kuznets curve (EKC) could be the result of indeterminacy of equilibria. In a simple neoclassical growth model with a single environmental externality in households’ utility function and with public abatement, we characterize the condition...