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On the Fiscal Strategies of Escaping Poverty-Environment Traps (and) Towards Sustainable Growth
- Publication Year :
- 2014
- Publisher :
- Munich: Center for Economic Studies and ifo Institute (CESifo), 2014.
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Abstract
- An economy with clean and dirty intermediate inputs may fall into a trap characterized by low environmental quality and low life expectancy, while the others converge to opposite steady states. We propose new strategies towards sustainable growth. They include: (i) taxes (subsidies) imposed on the production of intermediate inputs to improve environmental quality, and therefore, life expectancy and capital accumulation, in order to guarantee that an economy locked in a poverty-environment trap can escape the stagnation; (ii) taxes (subsidies) imposed on the production of intermediate inputs, consumption, and capital income in order to decentralize the transition to the social optimum.
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.od......1687..a6ef3903366d0498406cc2dc7ade1cf8