In this note we compare the laissez-faire steady-state solution in the Howitt and Aghion (1998) model to the social optimum. The analysis offers several new insights in comparison to the welfare analysis in Aghion and Howitt (1992). We find various new distortions between private and optimal...

International diffusion of advanced environment and energy-related technologies has received much attention in recent environmental economics studies. As a much needed complement to the "black box" complex numerical modelling, this paper contributes to developing a simple, intuitive analytical...