Rotillon, Gilles; Jouvet, Pierre-André; Bréchet, Thierry - Université Paris-Dauphine (Paris IX) - 2013
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...