Preserving or escaping? On the welfare effects of environmental self-protective choices
AbstractIn modern societies individuals often try to alleviate their personal damages from environmental degradation by increasing their consumption of private goods. Although this “self-protective” behavior is very frequent in industrial economies, insufficient attention has been paid to its economic and environmental consequences. In this paper we show that such a behavior can make everyone worse-off. For this purpose, using as paradigmatic case a two-islands evolutionary model, we prove analytically that environmental “self-protection” may trap the system into an undesirable (Pareto-dominated) situation and discuss a few real-life examples in which this mechanism may have actually occurred. Although the proposed model is deliberately extremely simple, it may provide some interesting insights on an aspect that has been mainly ignored in the literature so far.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).
Volume (Year): 41 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/620175
Self-protective choices; Defensive expenditures; Environmental degradation; Negative externalities; Economic growth;
Other versions of this item:
- Antoci, Angelo & Borghesi, Simone, 2010. "Preserving or escaping? On the welfare effects of environmental self-protective choices," MPRA Paper 22580, University Library of Munich, Germany.
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
- Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
- Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
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