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Environmental Quality, Life Expectancy, and Sustainable Economic Growth

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Author Info
Dimitrios Varvarigos ()
Abstract

I construct a model of a growing economy with pollution. The analysis of the model shows that the interactions between capital accumulation, endogenous longevity and environmental quality determine both the long-run growth rate of the economy and the pattern of convergence (i.e., monotonic or cyclical) towards the balanced growth path. I argue that such interactions can provide a possible explanatory factor behind the, empirically observed, negative correlation of longrun growth with its short-term cycles. Furthermore, the model may capture the observed pattern whereby economic growth and mortality rates appear to be negatively related in the long-run, but positively related in the short-run.

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File URL: http://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp08-19.pdf
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 08/19.

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Date of creation: Jun 2008
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Handle: RePEc:lec:leecon:08/19

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Related research
Keywords: Environmental quality; longevity; economic growth; cycles;

Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting

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References listed on IDEAS
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  1. Garey Ramey & Valerie A. Ramey, 1994. "Cross-Country Evidence on the Link Between Volatility and Growth," NBER Working Papers 4959, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Cipriani, Giam Pietro & Makris, Miltiadis, 2007. "Indeterminacy, intergenerational redistribution, endogenous longevity and human capital accumulation," Journal of Economic Dynamics and Control, Elsevier, vol. 31(2), pages 613-633, February. [Downloadable!] (restricted)
  3. Marianne Sensier & Dick van Dijk, 2004. "Testing for Volatility Changes in U.S. Macroeconomic Time Series," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 833-839, 08. [Downloadable!] (restricted)
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  4. Canton, E., 1996. "Business cycles in a two-sector model of endogenous growth," Discussion Paper 116, Tilburg University, Center for Economic Research. [Downloadable!]
  5. Jouvet, Pierre-Andre & Michel, Philippe & Rotillon, Gilles, 2005. "Optimal growth with pollution: how to use pollution permits?," Journal of Economic Dynamics and Control, Elsevier, vol. 29(9), pages 1597-1609, September. [Downloadable!] (restricted)
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