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Lethal Effects of Pollution and Economic Growth: Efficiency of Abatement Technology

Author

Listed:
  • Asuka Oura

    (Daito Bunka University)

  • Yasukatsu Moridera

    (Osaka University)

  • Koichi Futagami

    (Osaka University)

Abstract

The accumulation of pollution negatively impacts human health. Extreme increases in pollution, in particular, may have lethal implications for human beings, and, indeed, all living organisms. This paper thus devises a new model of economic growth that takes into account these lethal effects of accumulated pollution via a pollution threshold to show two key results. First, if an abatement technology is relatively inefficient, there exists a stationary steady state in which consumption and pollution stop growing. Second, if the abatement technology is sufficiently efficient, there exists a path along which pollution decreases at an accelerating rate until it finally reaches zero. In this case, consumption grows at a constant rate.

Suggested Citation

  • Asuka Oura & Yasukatsu Moridera & Koichi Futagami, 2018. "Lethal Effects of Pollution and Economic Growth: Efficiency of Abatement Technology," The Japanese Economic Review, Springer, vol. 69(2), pages 189-206, June.
    • Handle: RePEc:spr:jecrev:v:69:y:2018:i:2:d:10.1111_jere.12151
    DOI: 10.1111/jere.12151
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    References listed on IDEAS

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    More about this item

    Keywords

    O44; Q52;

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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