Consumption/pollution tradeoffs in an environment vulnerable to pollution-related catastrophic collapse*
نویسندگان
چکیده
This paper considers the consequences of an avoidable risk of irreversible environmental catastrophe for society’s optimal long-run consumption/pollution tradeoffs. The risk is assumed to be a nondecreasing function of pollution concentration which evolves as a dynamic environmental renewal process. The main objective of the paper is to derive qualitative insights regarding the effects of such risk on optimal management.
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