Controlling pollution and environmental absorption capacity -- Self-regenerating environmental absorption efficiency myopia and the Soylent Green scenario -- Transboundary pollution control and environmental absorption efficiency management -- Production-based pollution versus deforestation rate...

We study an optimal AK-like model of capital accumulation and growth in the presence of a negative environmental externality in the tradition of Stokey (1998). Both production and consumption activities generate polluting waste. The economy exerts a recycling effort to reduce the stock of waste....