BRECHET, Thierry; JOUVET, Pierre - André; ROTILLON, Gilles - Center for Operations Research and Econometrics (CORE), … - 2010
In this paper we study the optimal growth path and its decentralization in a two-sector overlapping- generations model with pollution. One sector (power generation) is polluting and the other (final good) is not. Pollution is regulated by tradable emission permits. The issue is whether the...