The purpose of this paper is to construct a dynamic optimal model of sustainable development. Under the consideration of environmental protection and economic growth, the objectives of the model are to maximize the total present utility value of current and future generations. We know that the capital is a necessary factor to develop the economy, so we consider that the capital is the only input factor for production function. To internalize the externality, the environmental protection policy is to collect the pollution tax not only from producer but also from consumer in order to be in accordance with the spirit of social justice. And the balanced budget should make the pollution tax revenue be adequate to provide the government pollution control and public expenditure. This paper applies the dynamic optimization theory to construct the model, we have descriptions of the model and also have some inferences as conclusions.
關聯:
Journal of Statistics and Management Systems nol. 3, no. 2 pp.171-191
