Distance to the end: The question of UNsustainability
研究了污染对全要素生产率的负面影响如何导致经济崩溃，并探讨了在税收约束下，减缓与适应政策的选择如何取决于污染强度，以及碳税相比收入税更有效。
This paper considers the dynamics of pollution and sustainable growth in a context where the detrimental effects of pollution on total factor productivity can push the economy to a point of collapse. With environmental policy constrained by tax revenues, we investigate how the proximity to collapse - distance to the end - influences the balance between mitigation and adaptation spending. We show that adaptation policies are recommended when pollution intensity is high, whereas mitigation policies may be more effective when pollution intensity is low. Financing these policies by a carbon tax is more effective than an income tax. Examining the welfare of present and future generations, we reveal that the trade-off between mitigation and adaptation does not align across generations: while current generations may prefer adaptation, future generations are more likely to benefit from mitigation.