000010622 001__ 10622
000010622 005__ 20180122194038.0
000010622 037__ $$a1318-2016-103291
000010622 041__ $$aen
000010622 084__ $$aQ2
000010622 084__ $$aQ42
000010622 245__ $$aOptimal Investment in Clean Production Capacity
000010622 260__ $$c2002
000010622 269__ $$a2002
000010622 300__ $$a30
000010622 336__ $$aWorking or Discussion Paper
000010622 446__ $$aEnglish
000010622 490__ $$aDiscussion Paper 02-38
000010622 520__ $$aFor the mitigation of long-term pollution threats, one must consider that both the process of environmental degradation and the switchover to new and cleaner technologies are dynamic. We develop a model of a uniform good that can be produced by either a polluting technology or a clean one; the latter is more expensive and requires investment in capacity. We derive the socially optimal pollution stock accumulation and creation of nonpolluting production capacity, weighing the tradeoffs among consumption, investment and adjustment costs, and environmental damages. We consider the effects of changes in the pollution decay rate, the capacity depreciation rate, and the initial state of the environment on both the steady state and the transition period. The optimal transition path looks quite different with a clean or dirty initial environment. With the former, investment is slow and the price of pollution may overshoot the long-run optimum before converging. With the latter, capacity may overshoot.
000010622 650__ $$aEnvironmental Economics and Policy
000010622 6531_ $$apollution accumulation
000010622 6531_ $$aclean technology
000010622 6531_ $$acapacity investment
000010622 700__ $$aFischer, Carolyn
000010622 700__ $$aToman, Michael
000010622 700__ $$aWithagen, Cees
000010622 8564_ $$s361257$$uhttp://ageconsearch.umn.edu/record/10622/files/dp020038.pdf
000010622 887__ $$ahttp://purl.umn.edu/10622
000010622 909CO $$ooai:ageconsearch.umn.edu:10622$$pGLOBAL_SET
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  Previous issue date: 2002
000010622 982__ $$gResources for the Future>Discussion Papers
000010622 980__ $$a1318