A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2018; you can also visit the original URL.
The file type is application/pdf
.
The transition from dirty to clean industries: optimal fiscal policy and the environmental Kuznets curve
2004
Journal of Environmental Economics and Management
This paper investigates privately and socially optimal patterns of economic development in a two-sector endogenous growth model with clean and dirty goods. We consider a second-best fiscal policy framework in which distortionary taxes jointly influence economic growth and environmental quality. In this policy setting, three conditions produce an Environmental Kuznets Curve (EKC): (i) dirty output is bounded; (ii) clean output grows endogenously; and (iii) growth in the dirty sector reduces
doi:10.1016/j.jeem.2003.11.007
fatcat:bprpc2d52bb25ja6jcepm2pgou