Optimal Fiscal Rules for Green Growth in an Endogenous Growth Model

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Seung-Rae Kim
• 간행물 정보: 『한국재정학회 학술대회 논문집』2011년도 추계학술대회 논문집, 24~48쪽, 전체 25쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2011.10.30

영문 초록

To explore the effects of a tighter environmental policy on long-run sustained growth, this paper uses a one-sector dynamic model of endogenous growth, based on the joint accumulation of private capital and abatement knowledge capital. It then derives analytically the optimal fiscal rules on public investment and taxation for ‘green growth’ (defined as ecologically-sustainable development). The result implies that the long-run sustained balanced-growth path and the effects of some tightening environmental and fiscal policy depend crucially on some key parameters of the economy such as production elasticity of abatement knowledge and the difference between the productivities of abatement knowledge and pollution in production. Moreover, unlike the previous results suggested by the literature on growth and taxation, the rate of environmental investment that maximizes the long-run growth rate should be greater than its own ‘pure’. output elasticity by the amount of the premium for environmental sustainability. Thus, for green growth, it is shown that the overall abatement knowledge intensity of production in the economy should be directed by this fiscal rule.

목차

Abstract

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Internalizing the Environmental Externalities

Ⅳ. Effects of Capital Income Taxation

Ⅴ. Conclusions

References

Appendix: Optimality conditions with environmental quality

키워드

optimal investment and taxation environmental quality private capital abatement knowledge endogenous growth capital income taxation direction of investment