Discussion Papers no. 143
Evidence from Norway
The environmental drag on long-term economic performance
The environmental drag is the cost to society of environmental constraints. This paper estimates the long-run environmental
drag on the Norwegian economy. We employ a model called DREAM (dynamic resource / environmental applied model). This is an
applied general equilibrium model extended to include important environmental linkages.
After having explained the structure of our model, the paper presents macroeconomic effects, and impacts on growth and welfare
of environmental constraints. To check robustness we perform a number of sensitivity analyses. Most of our results are remarkably
robust to alternative assumptions. Contrary to widespread opinion, a low discount rate increases the environmental drag on
welfare. Reducing the rate of technological progress will have similar effects.
Om publikasjonen
- Tittel
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The environmental drag on long-term economic performance. Evidence from Norway
- Ansvarlige
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Annegrete Bruvoll, Solveig Glomsrød, Haakon Vennemo
- Serie og -nummer
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Discussion Papers no. 143
- Utgiver
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Statistics Norway, Research Department
- Emne
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Discussion Papers
- Antall sider
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34
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
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