Kathleen Day (Associate Professor of Economics, University of Ottawa) R. Quentin Grafton (Director, Institute of the Environment and Associate Professor of Economics, University of Ottawa)
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In this chapter, Kathleen Day and R. Quentin Grafton explore the relationship between the economy and the environment. One approach sees economic growth leading to environmental degradation by imposing stresses on limited natural resources and ecosystems and by increasing emissions of pollutants. A second perspective argues the opposite relationship holds. Economic growth, once a certain level is achieved, leads to a cleaner environment as the higher income shifts societal preferences toward a better quality of the environment and at the same time provides the resources to produce such an environment. In addition, it is argued that economic growth is increasingly service-based, decoupling pollution from economic activity. The authors examine the relationship between economic growth and environmental degradation in Canada. The implication of their findings is that economic growth by no means resolves environmental problems.
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ReDIF This chapter was published in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Director (ed.) The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, Centre for the Study of Living Standards, pages , 2001.
Find related papers by JEL classification: O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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