We study how public policies affects an economy where production emits pollutants and investment in productive assets raises the economy’s overall productivity. We explore two hypotheses about how the accumulation of pollutants affects human well-being. Under the first one, there is no limit...

We show that accumulation and growth can be fed by negative externalities. We modify a growth model a la Solow-Ramsey, in which the labor\leisure choice has been included, in three ways: i) the welfare of agents also depends on a common; ii) the latter is deteriorated by the production of the...

We study an economy where households invest in capital and cause negative externalities on a renewable resource entering their utility function. There are also endogenous technical progress boosting labor productivity and the possibility of investing in resource-saving technical progress. Within...