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Economic Growth, Industrialization and the Environment

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  • Jevan Cherniwchan

    (University of Calgary)

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    Abstract

    This paper argues the compositional shift from agricultural to industrial production - industrialization - is a central determinant of changes in environmental quality as economies develop. A simple two-sector model of neoclassical growth and the environment in a small open economy is developed to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 68 countries over the period 1970-2000. The results show the process of industrialization is a significant determinant of observed changes in emissions: a 1% increase in industry's share of total output is associated with an 24% increase in the level of emissions per capita.

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    File URL: http://econ.ucalgary.ca/sites/econ.ucalgary.ca.manageprofile/files/unitis/publications/162-34194/Jevan.pdf
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    Bibliographic Info

    Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 2010-28.

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    Date of creation: 01 Nov 2010
    Date of revision: 01 Nov 2010
    Handle: RePEc:clg:wpaper:2010-28

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    1. repec:chb:bcchwp:03 is not listed on IDEAS
    2. Erwin Bulte & John A. List & Mark C. Strazicich, 2004. "Regulatory Federalism and the Distribution of Air Pollutant Emissions," Working Papers 04-16, Department of Economics, Appalachian State University.
    3. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
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      • Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677 Elsevier.
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    14. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
    15. Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
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    17. Mark Strazicich & John List, 2003. "Are CO 2 Emission Levels Converging Among Industrial Countries?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(3), pages 263-271, March.
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