IDEAS home Printed from https://ideas.repec.org/a/spr/decfin/v41y2018i2d10.1007_s10203-018-0226-z.html
   My bibliography  Save this article

Environmental depletion, defensive consumption and negative externalities

Author

Listed:
  • Alessandro Fiori Maccioni

    (University of Sassari)

Abstract

This paper analyses economic dynamics in a context in which the production and consumption choices of economic agents generate environmental degradation. Agents can defend themselves from environmental degradation by increasing the production and consumption of output, which is assumed to be a (perfect) substitute for environmental quality. We consider the cases in which agents can coordinate their actions or not, and we show that if the dynamics is conditioned by negative externalities (so that there is no coordination), then a self-reinforcing mechanism may occur leading to production and consumption levels higher than the socially optimal ones. A complete analysis of the dynamics and of the welfare properties of the stationary states is provided.

Suggested Citation

  • Alessandro Fiori Maccioni, 2018. "Environmental depletion, defensive consumption and negative externalities," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 203-218, November.
    • Handle: RePEc:spr:decfin:v:41:y:2018:i:2:d:10.1007_s10203-018-0226-z
    DOI: 10.1007/s10203-018-0226-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10203-018-0226-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10203-018-0226-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Di Vita, Giuseppe, 2009. "Legal families and environmental protection: Is there a causal relationship?," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 694-707, September.
    2. Antoci, Angelo & Russu, Paolo & Sordi, Serena & Ticci, Elisa, 2014. "Industrialization and environmental externalities in a Solow-type model," Journal of Economic Dynamics and Control, Elsevier, vol. 47(C), pages 211-224.
    3. Martinet, Vincent & Blanchard, Fabian, 2009. "Fishery externalities and biodiversity: Trade-offs between the viability of shrimp trawling and the conservation of Frigatebirds in French Guiana," Ecological Economics, Elsevier, vol. 68(12), pages 2960-2968, October.
    4. Jason Shogren & Thomas Crocker, 1991. "Cooperative and noncooperative protection against transferable and filterable externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(2), pages 195-214, June.
    5. Charles Perrings & George Halkos, 2012. "Who Cares about Biodiversity? Optimal Conservation and Transboundary Biodiversity Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(4), pages 585-608, August.
    6. Bartolini, Stefano & Bonatti, Luigi, 2002. "Environmental and social degradation as the engine of economic growth," Ecological Economics, Elsevier, vol. 43(1), pages 1-16, November.
    7. Antoci, Angelo & Borghesi, Simone & Russu, Paolo, 2012. "Environmental protection mechanisms and technological dynamics," Economic Modelling, Elsevier, vol. 29(3), pages 840-847.
    8. Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
    9. Antoci, Angelo, 2009. "Environmental degradation as engine of undesirable economic growth via self-protection consumption choices," Ecological Economics, Elsevier, vol. 68(5), pages 1385-1397, March.
    10. Angelo Antoci & Simone Borghesi & Marcello Galeotti, 2008. "Should we replace the environment?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(4), pages 283-297, March.
    11. Angelo Antoci & Simone Borghesi, 2010. "Environmental degradation, self-protection choices and coordination failures in a North–South evolutionary model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 5(1), pages 89-107, June.
    12. Angelo Antoci & Stefano Bartolini, 1997. "Externalities and Growth in an Evolutionary Game," Department of Economics Working Papers 9710, Department of Economics, University of Trento, Italia.
    13. Sun, Cong & Kahn, Matthew E. & Zheng, Siqi, 2017. "Self-protection investment exacerbates air pollution exposure inequality in urban China," Ecological Economics, Elsevier, vol. 131(C), pages 468-474.
    14. Christian Leipert, 1989. "National Income and Economic Growth: The Conceptual Side of Defensive Expenditures," Journal of Economic Issues, Taylor & Francis Journals, vol. 23(3), pages 843-856, September.
    15. A. Antoci & S. Borghesi & M. Sodini, 2017. "Water Resource Use and Competition in an Evolutionary Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2523-2543, June.
    16. Simone Borghesi, 2014. "Water tradable permits: a review of theoretical and case studies," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 57(9), pages 1305-1332, September.
    17. Antoci, Angelo & Borghesi, Simone & Russu, Paolo & Ticci, Elisa, 2015. "Foreign direct investments, environmental externalities and capital segmentation in a rural economy," Ecological Economics, Elsevier, vol. 116(C), pages 341-353.
    18. Antoci, Angelo & Borghesi, Simone, 2012. "Preserving or escaping? On the welfare effects of environmental self-protective choices," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 248-254.
    19. Antoci, Angelo & Bartolini, Stefano, 1999. "Negative externalities as the engine of growth in an evolutionary context," MPRA Paper 13908, University Library of Munich, Germany.
    20. Bird, Peter J. W. N., 1987. "The transferability and depletability of externalities," Journal of Environmental Economics and Management, Elsevier, vol. 14(1), pages 54-57, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mikhail Anufriev & Davide Radi & Fabio Tramontana, 2018. "Some reflections on past and future of nonlinear dynamics in economics and finance," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 91-118, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antoci, Angelo & Sodini, Mauro, 2009. "Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities," Chaos, Solitons & Fractals, Elsevier, vol. 42(3), pages 1439-1450.
    2. Antoci, Angelo & Borghesi, Simone & Russu, Paolo, 2012. "Environmental protection mechanisms and technological dynamics," Economic Modelling, Elsevier, vol. 29(3), pages 840-847.
    3. Antoci, Angelo, 2009. "Environmental degradation as engine of undesirable economic growth via self-protection consumption choices," Ecological Economics, Elsevier, vol. 68(5), pages 1385-1397, March.
    4. Antoci, Angelo & Borghesi, Simone, 2012. "Preserving or escaping? On the welfare effects of environmental self-protective choices," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 248-254.
    5. Angelo Antoci, 2005. "Environmental Resources Depletion and Interplay Between Negative and Positive Externalities in a Growth Model," Working Papers 2005.9, Fondazione Eni Enrico Mattei.
    6. Antoci, Angelo & Borghesi, Simone & Russu, Paolo & Ticci, Elisa, 2015. "Foreign direct investments, environmental externalities and capital segmentation in a rural economy," Ecological Economics, Elsevier, vol. 116(C), pages 341-353.
    7. Angelo Antoci & Simone Borghesi & Gerardo Marletto, 2012. "To drive or not to drive? A simple evolutionary model," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2012(2), pages 31-47.
    8. Angelo Antoci & Marcello Galeotti & Serena Sordi, 2016. "Environmental pollution as engine of industrialization," Department of Economics University of Siena 725, Department of Economics, University of Siena.
    9. Angelo Antoci & Simone Borghesi, 2010. "Environmental degradation, self-protection choices and coordination failures in a North–South evolutionary model," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 5(1), pages 89-107, June.
    10. Angelo Antoci & Paolo Russu & Elisa Ticci, 2008. "Structural Change, Environment and Well-being: Interactions Between Production and Consumption Choices of the Rich and the Poor in Developing Countries," Working Papers 2008.48, Fondazione Eni Enrico Mattei.
    11. Antoci, Angelo & Borghesi, Simone & Galeotti, Marcello & Russu, Paolo, 2022. "Maladaptation to environmental degradation and the interplay between negative and positive externalities," European Economic Review, Elsevier, vol. 143(C).
    12. Angelo Antoci & Paolo Russu & Elisa Ticci, 2022. "Modeling maladaptation in the inequality–environment nexus," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(1), pages 115-140, January.
    13. Antoci, Angelo & Russu, Paolo & Ticci, Elisa, 2009. "Distributive impact of structural change: Does environmental degradation matter?," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 266-278, December.
    14. Antoci, Angelo & Sabatini, Fabio & Sodini, Mauro, 2012. "The Solaria syndrome: Social capital in a growing hyper-technological economy," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 802-814.
    15. Antoci, Angelo & Borghesi, Simone & Galeotti, Marcello & Sodini, Mauro, 2021. "Living in an uncertain world: Environment substitution, local and global indeterminacy," Journal of Economic Dynamics and Control, Elsevier, vol. 126(C).
    16. Antoci, Angelo & Russu, Paolo & Ticci, Elisa, 2008. "Structural change, economic growth and environmental dynamics with heterogeneous agents," MPRA Paper 13668, University Library of Munich, Germany.
    17. Jeroen C. J. M. van den Bergh, 1999. "Materials, Capital, Direct/Indirect Substitution, and Mass Balance Production Functions," Land Economics, University of Wisconsin Press, vol. 75(4), pages 547-561.
    18. Simone Borghesi & Giorgia Giovannetti & Gianluca Iannucci & Paolo Russu, 2019. "The Dynamics of Foreign Direct Investments in Land and Pollution Accumulation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(1), pages 135-154, January.
    19. Travis Warziniack & David Finnoff & Jonathan Bossenbroek & Jason Shogren & David Lodge, 2011. "Stepping Stones for Biological Invasion: A Bioeconomic Model of Transferable Risk," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(4), pages 605-627, December.
    20. Eli Fenichel & Timothy Richards & David Shanafelt, 2014. "The Control of Invasive Species on Private Property with Neighbor-to-Neighbor Spillovers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 59(2), pages 231-255, October.

    More about this item

    Keywords

    Defensive consumption; Negative externalities; Environmental goods; Self-protection; Altruism;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:decfin:v:41:y:2018:i:2:d:10.1007_s10203-018-0226-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.