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

Wei-Bin Zhang; Wei-Bin Zhang

doi:10.3934/GF.2019.2.205

Green Finance

2019, Volume 1, Issue 2: 205-220. doi: 10.3934/GF.2019.2.205

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Research article Special Issues

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

Wei-Bin Zhang ^,

College of International Management, Ritsumeikan Asia Pacific University, Japan

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.
- business cycles,
- periodic shocks,
- multi-region growth,
- amenity,
- pollutant accumulation,
- environmental policy,
- wealth accumulation
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

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Abstract

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.

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