Research article Special Issues

Growth, environmental change and business cycles in a multi-regional economy

  • Received: 12 March 2019 Accepted: 24 May 2019 Published: 03 June 2019
  • JEL Codes: E13, E32, F18, F23

  • The purpose of this is to examine multi-regional dynamics with wealth and pollutant accumulation over time. The paper generalizes the dynamic model by Zhang (2016). It treats regional amenities endogenous variables dependent on the region's population and level of pollutants. Regional differences in productivities and amenities are important for modelling regional agglomeration. The government decides environmental tax rates on production, consumption, wealth, income from wealth and housing. The economy is perfectly competitive. The dynamics of J-region economy is described by differential equations. We demonstrate business cycles due to different exogenous periodic perturbations in the multi-regional economy.

    Citation: Wei-Bin Zhang. Growth, environmental change and business cycles in a multi-regional economy[J]. Green Finance, 2019, 1(2): 205-220. doi: 10.3934/GF.2019.2.205

    Related Papers:

  • The purpose of this is to examine multi-regional dynamics with wealth and pollutant accumulation over time. The paper generalizes the dynamic model by Zhang (2016). It treats regional amenities endogenous variables dependent on the region's population and level of pollutants. Regional differences in productivities and amenities are important for modelling regional agglomeration. The government decides environmental tax rates on production, consumption, wealth, income from wealth and housing. The economy is perfectly competitive. The dynamics of J-region economy is described by differential equations. We demonstrate business cycles due to different exogenous periodic perturbations in the multi-regional economy.


    加载中


    [1] Antonakakis N, Chatziantoniou I, Filis G (2017) Energy Consumption, CO2 Emissions, and Economic Growth: An Ethical Dilemma. Renew Sust Energy Rev 68: 808–824. doi: 10.1016/j.rser.2016.09.105
    [2] Apergis N, Payne JE (2014) Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence from a Nonlinear Panel Smooth Transition Vector Error Correction Model. Energy Econ 42: 226–232. doi: 10.1016/j.eneco.2014.01.003
    [3] Chen Y, Irwin EG, Jayaprakash C (2013) Population Dispersion vs. Concentration in a Two-Region Migration Model with Endogenous Natural Amenities. J Reg Sci 53: 256–273.
    [4] Chiarella C, Flaschel P (2000) The Dynamics of Keynesian Monetary Growth: Macro Foundations, Cambridge University Press, Cambridge.
    [5] Debarsy N, Ertur C (2019) Interaction Matrix Selection in Spatial Autoregressive Models with an Application to Growth Theory. Reg Sci Urban Econ 75: 49–69. doi: 10.1016/j.regsciurbeco.2019.01.002
    [6] Diamond DB, Tolley GS (1981) The Economics of Urban Amenities, New York: Academic Press.
    [7] Forslid R, Ottaviano GIP (2003) Trade and Location: Two Analytically Solvable Models. J Econ Geogr 3: 229–240. doi: 10.1093/jeg/3.3.229
    [8] Fujita M, Krugman P, Venables A (1999) The Spatial Economy, Cambridge, MA: MIT Press.
    [9] Fullerton D, Kim SR (2008) Environmental investment and policy with distortionary taxes, and endogenous growth. J Environ Econ Manage 56: 141–154. doi: 10.1016/j.jeem.2008.02.001
    [10] Gandolfo G (2005) Economic Dynamics, Berlin: Springer.
    [11] Gassebner M, Lamlay MJ, Sturmz JE (2011) Determinants of Pollution: What Do We Really Know? Oxford Econ Pap 63: 568–595. doi: 10.1093/oep/gpq029
    [12] Glaeser EL, Maré DC (2001) Cities and Skills. J Labor Econ 19: 316–342. doi: 10.1086/319563
    [13] Hirschman AO (1958) The Strategy of Economic Development, New Haven: Yale University Press.
    [14] Krugman P (1991) Increasing Returns and Economic Geography. J Polit Econ 99: 483–499. doi: 10.1086/261763
    [15] Krugman P (1993) On the Number and Location of Cities. Eur Econ Rev 37: 293–298. doi: 10.1016/0014-2921(93)90017-5
    [16] Kuznets S (1966) Modern Economic Growth, Rate Structure, and Spread, New Haven: Yale University Press.
    [17] Lai YB (2019) Environmental Policy Competition and Heterogeneous Capital Endowments. Reg Sci Urban Econ 75: 107–119. doi: 10.1016/j.regsciurbeco.2019.01.011
    [18] Landry SM, Chakraborty J (2009) Street Trees and Equity: Evaluating the Spatial Distribution of an Urban Amenity. Environ Plann A 41: 2651–2670. doi: 10.1068/a41236
    [19] Lanz B, Provins A (2013) Valuing Local Environmental Amenity with Discrete Choice Experiments: Spatial Scope Sensitivity and Heterogeneous Marginal Utility of Income. Environ Resour Econ 56: 105–130. doi: 10.1007/s10640-013-9648-9
    [20] Lin CYC, Liscow ZD (2012) Endogeneity in the Environmental Kuznets Curve: An Instrumental Variables Approach. Am J Agric Econ 95: 268–274.
    [21] Lorenz HW (1993) Nonlinear Dynamic Economics and Chaotic Motion, Springer-Verlag, Berlin.
    [22] Myrdal G (1957) Economic Theory and Underdeveloped Regions, London: Duckworth.
    [23] Partridge MD, Rickman DS, Ali K, et al. (2008) Lost in Space: Population Dynamics in the American Hinterlands and Small Cities. J Econ Geogr 8: 727–757. doi: 10.1093/jeg/lbn038
    [24] Plouder GC (1972) A model of waste accumulation and disposal. Can J Econ 5: 119–125. doi: 10.2307/133997
    [25] Puu T (2011) Nonlinear Economic Dynamics, Berlin: Springer.
    [26] Saracoglu DS, Roe TL (2019) Regional Cost-of-Living Differentials, Rural-Urban Migration, and the Contribution to Economic Growth. Pap Reg Sci 98: 973–994. doi: 10.1111/pirs.12404
    [27] Shone R (2002) Economic Dynamics-Phase Diagrams and Their Economic Application, Cambridge University Press, Cambridge.
    [28] Tabuchi T (2014) Historical Trends of Agglomeration to the Capital Region and New Economic Geography. Reg Sci Urban Econ 44: 50–59. doi: 10.1016/j.regsciurbeco.2013.11.004
    [29] Tivadar M, Jayet H (2019) Endogenous Generation of Amenities and the Dynamics of City Structure. Reg Sci Urban Econ 74: 49–56. doi: 10.1016/j.regsciurbeco.2018.10.005
    [30] Yang Z, Zhao Y (2014) Energy Consumption, Carbon Emissions, and Economic Growth in India: Evidence from Directed Acyclic Graphs. Econ Model 38: 533–540. doi: 10.1016/j.econmod.2014.01.030
    [31] Walenta J (2018) The Limits to Private-Sector Climate Change Action: The Geographies of Corporate Climate Governance. Econ Geogr 94: 461–484. doi: 10.1080/00130095.2018.1474078
    [32] Zhang WB (1991) Synergetic Economics, Springer-Verlag, Heidelberg.
    [33] Zhang WB (1993) Wages, Service Prices and Rent - Urban Division of Labor and Amenities. Seoul J Econ 6: 97–113.
    [34] Zhang WB (2005) Differential Equations, Bifurcations, and Chaos in Economics, Singapore: World Scientific.
    [35] Zhang WB (2006) Discrete Dynamical Systems, Bifurcations and Chaos in Economics, Elsevier: Amsterdam.
    [36] Zhang WB (2016) A Study of Regional Environmental Change and Economic Growth by Extending Solow's Growth Model. Ekon Yaklasim 27: 223–254. doi: 10.5455/ey.35931
  • Reader Comments
  • © 2019 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)
通讯作者: 陈斌, bchen63@163.com
  • 1. 

    沈阳化工大学材料科学与工程学院 沈阳 110142

  1. 本站搜索
  2. 百度学术搜索
  3. 万方数据库搜索
  4. CNKI搜索

Metrics

Article views(4262) PDF downloads(1388) Cited by(1)

Article outline

Figures and Tables

Figures(7)

Other Articles By Authors

/

DownLoad:  Full-Size Img  PowerPoint
Return
Return

Catalog