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Distributive impact of structural change: does environmental degradation matter?

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Author Info
Angelo Antoci () (Università degli Studi di Sassari)
Paolo Russu (Università degli Studi di Sassari)
Elisa Ticci () (Università degli Studi di Firenze, Dipartimento di Scienze Economiche)

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Abstract

Vulnerability to reduction of natural capital depends on defensive substitution possibilities that, in turn, are affected by the availability of other productive factors. However in several developing countries asset distribution tends to be highly skewed. Taking into account these elements, this paper proposes a model considering an economy polarized into two classes (the rich and the poor) and characterized by the following stylized facts income and productivity of the rural poor is highly dependent on natural resources; labour remuneration in rural sector represents the opportunity cost for wage labour; the rich can partially substitute natural capital with physical capital accumulation and wage labour employment. In this context, agents differ for feed back mechanisms and interactions between their choices of production and environmental dynamics. Moreover environmental depletion may trigger economic transition, but the structural change is likely to result regressive.

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Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze Economiche in its series Working Papers Series with number wp2008_07.rdf.

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Length: 30 pages
Date of creation: 2008
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Handle: RePEc:frz:wpaper:wp2008_07.rdf

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Related research
Keywords: structural change; environmental externalities; economic development; poverty alleviation.;

Find related papers by JEL classification:
D62 - Microeconomics - - Welfare Economics - - - Externalities
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Brander, J.A. & Taylor, M.S., 1996. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," UBC Departmental Archives 96-08, UBC Department of Economics.
    Other versions:
  2. Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
    Other versions:
  3. Datt, Gaurav & Ravallion, Martin, 1998. "Farm productivity and rural poverty in India," FCND discussion papers 42, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. 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. [Downloadable!]
  5. Antoci, Angelo & Galeotti, Marcello & Russu, Paolo, 2005. "Consumption of private goods as substitutes for environmental goods in an economic growth model," MPRA Paper 13664, University Library of Munich, Germany. [Downloadable!]
  6. Eliasson, Ludvik & Turnovsky, Stephen J., 2004. "Renewable resources in an endogenously growing economy: balanced growth and transitional dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1018-1049, November. [Downloadable!] (restricted)
    Other versions:
  7. J.B. (Hans) Opschoor, 2007. "Environment and Poverty: Perspectives, Propositions, Policies," Working Papers - General Series 437, Institute of Social Studies. [Downloadable!]
  8. Lopez, Ramon, 2003. "The Policy Roots of Socioeconomic Stagnation and Environmental Implosion: Latin America 1950-2000," World Development, Elsevier, vol. 31(2), pages 259-280, February. [Downloadable!] (restricted)
  9. Lopez, Ramon E. & Anriquez, Gustavo & Gulati, Sumeet, 2007. "Structural change and sustainable development," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 307-322, May. [Downloadable!] (restricted)
  10. Brander, J.A. & Taylor, M.S., 1995. "Open Acces Renewable Resources: Trade and Trade Policy in a Two-Country Model," UBC Departmental Archives 95-24, UBC Department of Economics.
    Other versions:
  11. Gustavo Anríquez & Ramón López, 2007. "Agricultural growth and poverty in an archetypical middle income country: Chile 1987-2003," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 191-202, 03. [Downloadable!] (restricted)
  12. Antoci, Angelo & Bartolini, Stefano, 1999. "Negative externalities as the engine of growth in an evolutionary context," MPRA Paper 13908, University Library of Munich, Germany. [Downloadable!]
  13. 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.
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