A closed form solution to Stollery's global warming problem with temperature in utility

Abstract

Stollery (1998) studied a polluting oil extracting economy governed by the constant utility criterion. The pollution caused the growth of temperature, negatively affecting production and utility. Stollery provided a closed form solution for the case with the Cobb-Douglas production function and temperature affecting only production. This paper offers a closed form solution to a non-trivial example of this economy with utility affected by temperature.essential nonrenewable resource; polluting economy; sustainable development; special function representation