A model of optimal stoical growth with pollution
摘要
We study a model of optimal growth in a discrete-time, infinite horizon setting. In this model, a consumption good is produced according to a linear technology that employs labor and causes polluting emissions. We depart from the literature by introducing a stoical effort. The higher the stoical effort, the lower the advantages derived from consumption. As a result, when the pollution stock is high, it is optimal to exert a stoical effort, which makes consumption less enjoyable and results in a decrease in pollution. When the pollution stock is low, there is no stoical effort and the optimal growth coincides with the optimal path of the standard optimal growth model.