I am trying to run a RBC model with environmental externality. The residual for all static equations are zero except for resource constraint. I am unable to understand the problem with this equation.
I put the difference in equation to see if there are other issues in the model. The Jacobian is coming to be singular. The collinear equations are technology for brown sector i.e. equation no 12 and government expenditure as shock equation i.e. equation no 23 are collinear. I am unable to identify the issue in the model.