Publication Date
2008
Recommended Citation
Levy, Amnon, Environmental Concern and Rational Production, Consumption and Rehabilitation, Department of Economics, University of Wollongong, 2008.
https://ro.uow.edu.au/commwkpapers/195
Abstract
Utility from consumption might be spoiled by the degradation of the environment. The incorporation of a direct dependency of utility on the state of the environment through environmental concern and the incorporation of the effects of production pollution and rehabilitative investment on the environment into a lifetime utility maximization model imply that a minimal degree of impatience is necessary for an interior steady state to exist. This steady state is unique, approachable along a path with damped oscillations of consumption and rehabilitative investment, and characterized by a larger production than in the steady state without environmental concern.
Publication Details
Levy, A, Environmental Concern and Rational Production, Consumption and Rehabilitation, Working Paper 08-10, Department of Economics, University of Wollongong, 2008.