In a previous post, I discussed a paper by Henning Bohn and Charles Stuart. After some second thoughts, I’ve come to some further conclusions.
First of all, it can be argued that the paradox I discussed in my previous post is simply a result of a paradoxical model. It’s paradoxical that productivity growth rates would stay constant for ever with dramatic shifts in both the population level and the environmental quality (which is presumed in the model where emissions are capped; alternatively substitute environmental quality with production technology).
Second, the model presumes that people not participating in the production fase don’t receive any income and thus cannot exist. In a world with a high productivity of labor, a relatively small work force could sustain a large population; through a tax scheme, for example.