An environmental restriction and income distribution in a capitalist economy

Eiji Hosoda

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3 Citations (Scopus)

Abstract

Let us consider a growing economy where capitalists organize production emitting pollutants. The government is supposed to issue emission rights in order to control the amount of emitted pollutants, while capitalists must control their emission of pollutants in accordance with the amount of emission rights they buy. It is assumed that workers are also allowed to purchase emission rights. We show that the conventional inverse relationship holds between the wage rate and the profit rate, and between per capita consumption and the growth rate in this economy. We also study how economic variables such as the wage rate and per capita consumption are affected by the workers’ purchase of emission rights.

Original languageEnglish
Pages (from-to)236-265
Number of pages30
JournalMetroeconomica
Volume47
Issue number3
DOIs
Publication statusPublished - 1996 Oct

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ASJC Scopus subject areas

  • Economics and Econometrics

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