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Environmental Economics and Policy Studies

, Volume 16, Issue 4, pp 397–443 | Cite as

Environment, growth, and technological change in a two-country overlapping-generations model

  • Shintaro NakagawaEmail author
  • Masayuki Sato
  • Rintaro Yamaguchi
Research Article Progress in Sustainable Development Economics
  • 260 Downloads

Abstract

This paper investigates the effects of a change in environmental abatement technology on the accumulation of capital stock and on the global environment in a two-country overlapping-generations model. Among other issues, we focus on a situation where abatement improves in only one country. With comparative static analysis, we derive the sufficient and necessary condition in the initial steady states for unilateral improvement in abatement technology to improve the two-country global environment. In addition, we examine the effects of changes in several technologies on capital stock and on the global environment.

Keywords

Global environment Abatement technology Overlapping-generations model 

JEL Classification

Q56 H87 

Notes

Acknowledgments

Earlier versions of this paper were presented at the EAERE 2011 annual conference, Rome, July 1st and at the SEEPS 2011, Nagasaki, September 24th. We thank Ken-Ichi Akao, Partha Dasgupta, Daisuke Ikazaki, Sjak Smulders, Koji Tokimatsu, Akira Maeda, Kazuhiro Ueta, an anonymous referee, and other participants at the conferences for their helpful comments and discussions. This work was partially supported by the Japan Society for the Promotion of Science KAKENHI Grant Number 23241019.

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Copyright information

© Springer Japan 2014

Authors and Affiliations

  • Shintaro Nakagawa
    • 1
    Email author
  • Masayuki Sato
    • 2
  • Rintaro Yamaguchi
    • 3
  1. 1.Faculty of EconomicsShimonoseki City UniversityShimonosekiJapan
  2. 2.Graduate School of Human Development and EnvironmentKobe UniversityKobeJapan
  3. 3.Nomura Research Institute Ltd.TokyoJapan

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