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Green Attitude and Economic Growth

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  • Ingrid Ott
  • Susanne Soretz

Abstract

We analyse the interdependence between green attitude and equilibrium development of environmental quality in an endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more obvious. The time path of pollution as well as the evolution of equilibrium growth are shown to depend crucially on the determinants of green attitude. Ongoing growth may lead to complete internalization of the environmental externality if green attitude improves with increasing wealth, e.g. as a consequence of an increase in environmental education. In contrast, if green attitude is determined exclusively by the level of environmental quality, pollution remains at a suboptimally high level. The interdependence of wealth and pollution in the determination of environmental awareness implies more complex dynamics. Capital growth enhances green attitude and thereby decreases pollution. Improved environmental quality in turn may increase capital growth due to less green attitude and therefore slow down convergence to the sustainable balanced growth path.

Suggested Citation

  • Ingrid Ott & Susanne Soretz, 2016. "Green Attitude and Economic Growth," CEEES Paper Series CE3S-01/16, European University at St. Petersburg, Department of Economics.
    • Handle: RePEc:eus:ce3swp:0116
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    Cited by:

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    2. Falk, Armin & Szech, Nora, 2016. "Pleasures of skill and moral conduct," Discussion Papers, Research Unit: Economics of Change SP II 2016-301, WZB Berlin Social Science Center.
    3. Mohammad Nurul Alam & Osarodion Ogiemwonyi & Ibrahim. E. Hago & Noor Azlinna Azizan & Fariza Hashim & Md Sazzad Hossain, 2023. "Understanding Consumer Environmental Ethics and the Willingness to Use Green Products," SAGE Open, , vol. 13(1), pages 21582440221, January.
    4. Ke Liu & Yurong Qiao & Qian Zhou, 2021. "Analysis of China’s Industrial Green Development Efficiency and Driving Factors: Research Based on MGWR," IJERPH, MDPI, vol. 18(8), pages 1-22, April.
    5. Adam Cook & Isaac Ehrlich, 2018. "Was higher education a major channel through which the US became an economic superpower in the 20th century?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 515-553, October.
    6. Borissov, Kirill & Pakhnin, Mikhail & Puppe, Clemens, 2017. "On discounting and voting in a simple growth model," European Economic Review, Elsevier, vol. 94(C), pages 185-204.
    7. Hazem Ahmed Khairy & Yehia Elzek & Nadir Aliane & Mohamed Fathy Agina, 2023. "Perceived Environmental Corporate Social Responsibility Effect on Green Perceived Value and Green Attitude in Hospitality and Tourism Industry: The Mediating Role of Environmental Well-Being," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    8. Walheer, Barnabé, 2018. "Labour productivity growth and energy in Europe: A production-frontier approach," Energy, Elsevier, vol. 152(C), pages 129-143.
    9. Han, Myat Su & Hampson, Daniel Peter & Wang, Yonggui & Wang, Hong, 2022. "Consumer confidence and green purchase intention: An application of the stimulus-organism-response model," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    10. Elena N. UNTARU & Ana ISPAS & Adina N. CANDREA, 2015. "THE INFLUENCE OF EU MEMBER COUNTRIES’ ECONOMIC DEVELOPMENT ON THEIR CITIZENS’ PRO-ENVIRONMENTAL ATTITUDES Abstract : The present paper aims to determine the influence of EU member countries’ eco," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(2), pages 1-8, july.

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    More about this item

    Keywords

    pollution; endogenous growth; green attitude;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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