Open AccessENVIRONMENTAL PROTECTION AND ECONOMIC GROWTH
Author(s) -
Vladimir Kühl Teles,
Ronaldo de Albuquerque e Arraes
Publication year - 2019
Publication title -
análise econômica
Language(s) - English
Resource type - Journals
eISSN - 2176-5456
pISSN - 0102-9924
DOI - 10.22456/2176-5456.49287
Subject(s) - kuznets curve , economics , hopf bifurcation , stock (firearms) , environmental policy , natural resource , growth model , extension (predicate logic) , bifurcation , natural resource economics , mathematical economics , ecology , economic growth , geography , computer science , nonlinear system , biology , physics , quantum mechanics , archaeology , programming language
This paper explores the link between environmental policy andeconomic growth by employing an extension of the AK Growth Model. Weinclude a state equation for renewable natural resources. Weassume that the change in environmental regulations inducescosts and that economic agents also derive some utility fromcapital stock accumulation vis-a-vis the environment.Using the Hopf bifurcation theorem, we show that cyclicalenvironmental policy strategies are optimal, providingtheoretical support for the Environmental Kuznets Curve.