Bréchet, Thierry; Jouvet, Pierre-André; Rotillon, Gilles - In: Ecological Economics 91 (2013) C, pp. 89-97
In this paper we study the dynamic general equilibrium path of an economy and the associated optimal growth path in a two-sector overlapping generation model with a stock pollutant. A sector (power generation) is polluting, and the other (final good) is not. Pollution is regulated by tradable...