Egli, Hannes; Steger, Thomas - In: Environmental & Resource Economics 36 (2007) 1, pp. 15-34
We set up a simple dynamic macroeconomic model with (i) polluting consumption and a preference for a clean environment, (ii) increasing returns in abatement giving rise to an EKC and (iii) sustained growth resulting from a linear final-output technology. There are two sorts of market failures...