[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ulp/sbbeta/2018-11.html
   My bibliography  Save this paper

Pollution effects on disease transmission and economic stability

Author

Listed:
  • Stefano BOSI
  • David DESMARCHELIER
Abstract
In this article, we embed a model of disease spread into a Ramsey model. A stock of pollution, viewed as a productive externality, affects both the disease transmission and the consumption demand. An ecofriendly government levies a proportional Pigouvian tax on production to depollute. We show the coexistence of two steady states in the long run: a disease-free and an endemic steady state. At the endemic steady state, a higher green-tax rate always reduces the pollution level. In the short run, we show the existence of limit cycles (through a Hopf bifurcation) as well as more complex dynamics of codimension two (a Gavrilov-Guckenheimer bifurcation). We complete the study with a numerical illustration of these bifurcations and a new facet of the Green Paradox: a higher tax rate can allow more scope for cycles by lowering the critical aversion to pollution and, thus, contribute to destabilize the economy and promote intergenerational inequalities.

Suggested Citation

  • Stefano BOSI & David DESMARCHELIER, 2018. "Pollution effects on disease transmission and economic stability," Working Papers of BETA 2018-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2018-11
    as

    Download full text from publisher

    File URL: http://beta.u-strasbg.fr/WP/2018/2018-11.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stefano Bosi & David Desmarchelier, 2018. "Limit Cycles Under a Negative Effect of Pollution on Consumption Demand: The Role of an Environmental Kuznets Curve," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 343-363, February.
    2. Samer Atallah, 2018. "Political transition in resource economies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 14(3), pages 233-256, September.
    3. Bosi, Stefano & Desmarchelier, David, 2019. "Local bifurcations of three and four-dimensional systems: A tractable characterization with economic applications," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 38-50.
    4. Fernández, Esther & Pérez, Rafaela & Ruiz, Jesús, 2012. "The environmental Kuznets curve and equilibrium indeterminacy," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1700-1717.
    5. Junxi Zhang, 1999. "Environmental sustainability, nonlinear dynamics and chaos," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 14(2), pages 489-500.
    6. Stefano Bosi & David Desmarchelier, 2018. "Pollution and infectious diseases," International Journal of Economic Theory, The International Society for Economic Theory, vol. 14(4), pages 351-372, December.
    7. Goenka, Aditya & Liu, Lin & Nguyen, Manh-Hung, 2014. "Infectious diseases and economic growth," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 34-53.
    8. Itaya, Jun-ichi, 2008. "Can environmental taxation stimulate growth? The role of indeterminacy in endogenous growth models with environmental externalities," Journal of Economic Dynamics and Control, Elsevier, vol. 32(4), pages 1156-1180, April.
    9. Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(4), pages 360-394, August.
    10. Antoine Le Riche, 2017. "Macroeconomic volatility and trade in OLG economies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 13(4), pages 401-425, December.
    11. Seegmuller, Thomas & Verchere, Alban, 2004. "Pollution as a source of endogenous fluctuations and periodic welfare inequality in OLG economies," Economics Letters, Elsevier, vol. 84(3), pages 363-369, September.
    12. Bosi, Stefano & Desmarchelier, David, 2019. "Local bifurcations of three and four-dimensional systems: A tractable characterization with economic applications," Mathematical Social Sciences, Elsevier, vol. 97(C), pages 38-50.
    13. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takuma Kunieda & Kazuo Nishimura, 2021. "Pollution, Human Capital, and Growth Cycles," Creative Economy, in: Kazuo Nishimura & Masatoshi Murase & Kazuyoshi Yoshimura (ed.), Creative Complex Systems, chapter 0, pages 85-99, Springer.
    2. Goenka, Aditya & Liu, Lin & Nguyen, Manh-Hung, 2021. "COVID-19 and a Green Recovery?," Economic Modelling, Elsevier, vol. 104(C).
    3. Guillaume MOREL, 2020. "A note on pollution and infectious disease," Working Papers of BETA 2020-38, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    4. Guillaume MOREL, 2020. "PA note on pollution and infectious diseases," Working Papers of BETA 2020-22, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Guillaume Morel, 2020. "A note on pollution and infectious disease," Economics Bulletin, AccessEcon, vol. 40(4), pages 2723-2733.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Desmarchelier & Magali Jaoul-Grammare & Guillaume Morel & Thi Kim Cuong Pham, 2021. "Infectious disease and endogenous cycles: lockdown hits two birds with one stone," Working Papers of BETA 2021-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Stefano Bosi & David Desmarchelier, 2017. "Are the Laffer curve and the green paradox mutually exclusive?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(5), pages 937-956, October.
    3. Stefano Bosi & David Desmarchelier, 2016. "Are the Laffer curve and the Green Paradox mutually exclusive?," Working Papers hal-04141602, HAL.
    4. Maxime MENUET & Alexandru MINEA & Patrick VILLIEU & Anastasios XEPAPADEAS, 2021. "Growth, Endogenous Environmental Cycles, and Indeterminacy," LEO Working Papers / DR LEO 2889, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    5. Maxime Menuet & Alexandru Minea & Patrick Villieu & Anastasios Xepapadeas, 2020. "Economic Growth and the Environment: A Theoretical Reappraisal," DEOS Working Papers 2031, Athens University of Economics and Business.
    6. Guillaume MOREL, 2020. "A note on pollution and infectious disease," Working Papers of BETA 2020-38, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. Stefano Bosi & David Desmarchelier, 2018. "Limit Cycles Under a Negative Effect of Pollution on Consumption Demand: The Role of an Environmental Kuznets Curve," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 343-363, February.
    8. Guillaume Morel, 2020. "A note on pollution and infectious disease," Economics Bulletin, AccessEcon, vol. 40(4), pages 2723-2733.
    9. David DESMARCHELIER, 2022. "Reconsidering the interplay between endogenous growth and the Environmental Kuznets Curve," Working Papers of BETA 2022-03, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    10. Stefano Bosi & David Desmarchelier & Lionel Ragot, 2015. "Preferences and pollution cycles," Working Papers hal-04141382, HAL.
    11. Stefano Bosi & David Desmarchelier, 2018. "Pollution and infectious diseases," International Journal of Economic Theory, The International Society for Economic Theory, vol. 14(4), pages 351-372, December.
    12. Guillaume MOREL, 2020. "PA note on pollution and infectious diseases," Working Papers of BETA 2020-22, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    13. Bosi, Stefano & Desmarchelier, David, 2018. "An economic model of metapopulation dynamics," Ecological Modelling, Elsevier, vol. 387(C), pages 196-204.
    14. repec:hal:journl:hal-03549316 is not listed on IDEAS
    15. Yanase, Akihiko, 2011. "Impatience, pollution, and indeterminacy," Journal of Economic Dynamics and Control, Elsevier, vol. 35(10), pages 1789-1799, October.
    16. Stefano Bosi & David Desmarchelier & Lionel Ragot, 2015. "Pollution effects on labor supply and growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 11(4), pages 371-388, December.
    17. Thomas Hellmann & Veikko Thiele, 2022. "A theory of voluntary testing and self‐isolation in an ongoing pandemic," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 24(5), pages 873-911, October.
    18. Beladi, Hamid & Chao, Chi-Chur & Hazari, Bharat R. & Laffargue, Jean-Pierre, 2009. "Tourism and the environment," Resource and Energy Economics, Elsevier, vol. 31(1), pages 39-49, January.
    19. Goenka, Aditya & Liu, Lin & Nguyen, Manh-Hung, 2021. "SIR economic epidemiological models with disease induced mortality," Journal of Mathematical Economics, Elsevier, vol. 93(C).
    20. Bosi, Stefano & Camacho, Carmen & Desmarchelier, David, 2021. "Optimal lockdown in altruistic economies," Journal of Mathematical Economics, Elsevier, vol. 93(C).
    21. Dong Cao & Lin Wang & Shouyang Wang, 2017. "Complex Dynamics Induced by Nonlinear Pollution Absorption, Pollution Emission Rate and Effectiveness of Abatement Technology in an OLG Model," Sustainability, MDPI, vol. 9(5), pages 1-11, May.

    More about this item

    Keywords

    SIS model; Ramsey model; pollution; transcritical bifurcation; Hopf bifurcation; Gavrilov-Guckenheimer bifurcation.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulp:sbbeta:2018-11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bestrfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.