Skip to Main content Skip to Navigation
Journal articles

Can harmful events be another source of environmental traps?

Abstract : This paper aims to present a new explanation for environmental traps through the presence of endogenous hazard rate. We show that adaptation and mitigation policies affect the occurrence of environmental traps differently. The former could cause environmental traps, whereas the latter could help society avoid such traps by decreasing the probability of a harmful event occurring. As a result, we present a new trade-off between adaptation and mitigation policies different than the usual dynamic trade-off that is highlighted in many studies and is crucial to developing countries. Contrary to the literature, when an economy is in a trap, an economy with a high environmental quality equilibrium tends to be more conservative in terms of resource exploitation than an economy with a low environmental quality equilibrium, which implies a heterogeneous reaction against the endogenous hazard rate.
Document type :
Journal articles
Complete list of metadata
Contributor : Elisabeth Lhuillier Connect in order to contact the contributor
Submitted on : Thursday, June 25, 2020 - 10:08:17 AM
Last modification on : Wednesday, November 3, 2021 - 5:49:42 AM

Links full text





Can Askan Mavi. Can harmful events be another source of environmental traps?. Journal of Mathematical Economics, Elsevier, 2020, 89, pp.29-46. ⟨10.1016/j.jmateco.2020.04.005⟩. ⟨hal-02880592⟩



Record views