Endogenous fluctuations induced by nonlinear pollution accumulation in an OLG economy and the bifurcation control

Dong, Can; Wang, Lin; Wang, Yaozhong

doi:10.1016/j.econmod.2011.07.016

Cited by 7 publications

(6 citation statements)

References 12 publications

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“…4 Chimeli and Braden (2005), Dinda (2005), López (1994); Selden and Song (1995) and Stokey (1998) extend the basic dynamic growth model with infinitely lived agents, by including the environment and the disutility of pollution. The EKC can also be derived from an OLG model as in John and Pecchenino (1994) and Cao, Wang, and Wang (2011). There are two major differences between their models and the OLG model here.…”

Section: The Ekc Theory and Evidencementioning

confidence: 98%

“…First, John and Pecchenino (1994) and Cao et al (2011) assume that agents are young and work in the first period and become old and consume only in the second period, while our model assume agents are children and make no economic decision in the first period and enter adulthood, work and are altruism toward their children in the second period. 1 WHO suggests that children aged less than five years that live in developing countries are the most vulnerable population in terms of total deaths attributable to Second, in John and Pecchenino (1994) and Cao et al (2011), each young agent supplies his one unit of labor inelastically and makes the decision on how to divide his wage between saving and investing in environmental maintenance, while in our model, we assume each adult agent makes the decisions on how to divide her human capital between production and pollution abatement and how to allocate her income between her consumption and the consumption of her children. Empirically, the EKC hypothesis is often tested by estimating a polynomial function of income.…”

Section: The Ekc Theory and Evidencementioning

confidence: 99%

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Population growth and the environmental Kuznets curve

Wang

Zhang

2015

China Economic Review

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This paper provides a specific application of the environmental Kuznets curve (EKC) in order to explain the effect of population growth on the environment. The main purpose is contributing to enhance the connection between theoretical and empirical analysis. We develop an overlapping generations (OLG) model that featured with an inverted U-shaped relationship between pollution emission and income and we examine the effect of population growth on this relationship. Simulations illustrate the model's predictions that positive population growth makes the EKC steeper and have higher peak, but it does not fundamentally change the pollution-income relationship. The econometric analysis finds evidence supporting our model's predictions using Chinese data at the province level.

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Section: The Ekc Theory and Evidencementioning

confidence: 98%

Section: The Ekc Theory and Evidencementioning

confidence: 99%

Population growth and the environmental Kuznets curve

Wang

Zhang

2015

China Economic Review

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“…Ainsi, notre papier va se rapprocher de la littérature sur les modèles à GI avec pollution entrant dans la fonction d'utilité 1 . Or, cette littérature adopte largement une fonction d'utilité de type CIES (Zhang [1999], Seegmuller et Verchère [2004,2007], Chen et Li [2011], Cao et al [2011]). Par conséquent, nous nous démarquons 2 de Finkelstein et al…”

Section: Le Ménage Représentatifunclassified

“…La littérature sur les modèles à GI a déjà souligné que la pollution, lorsqu'elle est un argument de la fonction d'utilité du consommateur, est une source de fluctuations endogènes. Toutefois, cette littérature est largement dominée par des contributions qui supposent une fonction d'utilité séparable entre consommation et pollution (Seegmuller et Verchère [2004, 2007, Chen et Li [2011], Cao et al [2011]), empêchant dès lors la pollution d'affecter l'utilité marginale de la consommation. Une exception notable est l'article de Zhang [1999] qui considère que la qualité de l'environnement et la consommation sont complémentaires.…”

Section: Dynamique Localeunclassified

Effet retardé de la pollution sur la santé : une source de fluctuations endogènes

Desmarchelier¹,

Rabesandratana²

2017

Revue d'Économie Politique

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Distribution électronique Cairn.info pour Dalloz. © Dalloz. Tous droits réservés pour tous pays.La reproduction ou représentation de cet article, notamment par photocopie, n'est autorisée que dans les limites des conditions générales d'utilisation du site ou, le cas échéant, des conditions générales de la licence souscrite par votre établissement. Toute autre reproduction ou représentation, en tout ou partie, sous quelque forme et de quelque manière que ce soit, est interdite sauf accord préalable et écrit de l'éditeur, en dehors des cas prévus par la législation en vigueur en France. Il est précisé que son stockage dans une base de données est également interdit.

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“…Environmental pollution has become a serious societal issue [1][2][3][4]. Pollution stock accumulation problems due to pesticide resistance, soil erosion, water pollution, and climate change have attracted more and more attention in studies of economic growth [5].…”

Section: Introductionmentioning

confidence: 99%

Complex Dynamics Induced by Nonlinear Pollution Absorption, Pollution Emission Rate and Effectiveness of Abatement Technology in an OLG Model

Dong

Wang

2017

Sustainability

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Abstract:In this work, nonlinear pollution absorption, emission rate, and effectiveness of abatement technology are incorporated into the classic overlapping generation model. Within this framework, we analyze the macroeconomic effects of pollution emission and abatement technology on the economy. Our findings reveal that different levels of pollution emission rates from per capita income and the effectiveness of abatement technology could induce complex dynamical behavior, including the occurrence of a stable equilibrium, cycles, and chaos. Our analysis shows that either the pollution emission rate per capita income should be controlled to be small enough or the effectiveness of abatement technology should be large enough to maintain a stable system yielding high level of per capita income. A high level of pollution emission rate per capita income and a low level of effectiveness of abatement technology can lead to a stable economy, but with a low level of per capita income. In the case that the pollution emission rate and the effectiveness of abatement technology vary in a certain range, the economy would become unstable, and cycles and chaos would emerge.

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Endogenous fluctuations induced by nonlinear pollution accumulation in an OLG economy and the bifurcation control

Cited by 7 publications

References 12 publications

Population growth and the environmental Kuznets curve

Population growth and the environmental Kuznets curve

Effet retardé de la pollution sur la santé : une source de fluctuations endogènes

Complex Dynamics Induced by Nonlinear Pollution Absorption, Pollution Emission Rate and Effectiveness of Abatement Technology in an OLG Model

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