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Effects of international sharing of pollution abatement burdens on income inequality among countries

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  • Hirazawa, Makoto
  • Saito, Koichi
  • Yakita, Akira

Abstract

Improvements in environmental quality will boost output production and hence economic growth. However, although environmental abatement equally benefits all economies in the world, it is shown that, if the private productive resources are not yet accumulated sufficiently in low income economies, income inequality among economies can be widened in the short term not only under equal burden sharing of pollution abatement but even under income-proportional burden sharing. When the marginal productivity is diminishing, the negative effect of the burden is large relative to the positive effect of the improved environment in economies in which resources are not accumulated sufficiently.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 35 (2011)
Issue (Month): 10 (October)
Pages: 1615-1625

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Handle: RePEc:eee:dyncon:v:35:y:2011:i:10:p:1615-1625

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Web page: http://www.elsevier.com/locate/jedc

Related research

Keywords: Income inequality Global natural environment International burden sharing of pollution abatement Economic development;

References

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