Andersen, Torben M.; Bhattacharya, Joydeep; Liu, Pan - 2016 - This Version: August 10, 2016
We describe a "business as usual" (BAU) economy in which pollution is a by-product of productive activity by the … pollution abatement and finances it via distorting taxes and borrowing on perfect international markets. Pollution levels start … pay off the debt, that too, in finite time. Along the transition, every generation faces less pollution, consumes more and …