caa a22 4500 475797787 CHVBK 20180406123729.0 cr unu---uuuuu 170329e20000601xx s 000 0 eng 10.1007/BF01676981 doi (NATIONALLICENCE)springer-10.1007/BF01676981 Complexities due to sluggish expansion of backstop technologies [Elektronische Daten] [Franz Wirl, Cees Withagen] This paper considers an economy using a technology that adds to a stock of pollution. Examples that come to mind are SO2-emissions from burning coal accumulating in the soil and CO2-emissions from fossil-energy use which are retained in the atmosphere. The stock of pollutants is subject to natural decay, albeit not necessarily of the simple often assumed linear type. In addition, a clean or so-called backstop technology is available that requires costly investments but is characterized by low variable costs (e.g., solar energy or wind power). The costly investments imply a slow build-up of the capacity of the backstop. On the modelling side, this is an essential extension of most of the literature that considers the unrealistic case where a backstop is instantaneously available. The second extension the present paper makes is to consider not only the planning problem but also the competitive outcomes. One of the interesting results is that stable limit cycles may characterize the socially optimal long-run outcome as well as the competitive equilibrium. In a competitive equilibrium pollution-control policy is not necessarily optimal in the sense of corresponding with the social optimum. Although cycling can occur in a competitive equilibrium, just as in the social optimum, relaxation of the control increases the set of parameter values for which complex and unstable behavior arises. Springer-Verlag, 2000 pollution nationallicence backstop nationallicence limit cycles nationallicence Q2 nationallicence D6 nationallicence Wirl Franz Center of Business Studies, University of Vienna, Brünnerstrasse 72, A-1210, Vienna, Austria aut Withagen Cees Faculty of Economics, Tilburg University, P.O. Box 90153, 5000 LE, Tilburg, The Netherlands aut Journal of Economics Springer Vienna 72/2(2000-06-01), 153-174 0931-8658 72:2<153 2000 72 712 https://doi.org/10.1007/BF01676981 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/BF01676981 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Wirl Franz Center of Business Studies, University of Vienna, Brünnerstrasse 72, A-1210, Vienna, Austria aut NATIONALLICENCE 700 1- Withagen Cees Faculty of Economics, Tilburg University, P.O. Box 90153, 5000 LE, Tilburg, The Netherlands aut NATIONALLICENCE 773 0- Journal of Economics Springer Vienna 72/2(2000-06-01), 153-174 0931-8658 72:2<153 2000 72 712 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer