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How Economic Development Influences the Environment

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  • Seema Jayachandran

Abstract

Reducing global poverty and addressing climate change and other environmental crises are among the most important challenges facing humanity today. This review article discusses one way in which these problems are intertwined: economic development affects the environment. I synthesize recent microempirical research on the environmental effects of economic development in low- and middle-income countries. The studies that I discuss identify the causal effects of specific aspects of economic development such as greater household purchasing power, expanded access to credit, more secure property rights, technological progress, and stronger regulatory capacity. I conclude by outlining some gaps in the literature.

Suggested Citation

  • Seema Jayachandran, 2021. "How Economic Development Influences the Environment," NBER Working Papers 29191, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29191
    Note: DEV EEE ITI POL
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    Cited by:

    1. Long, Hai & Li, Wen-Wei & Otrakçı, Caner, 2023. "Sustaining environment through natural resource and human development: Revisiting EKC curve in China through BARDL," Resources Policy, Elsevier, vol. 85(PB).
    2. Meeks, Robyn C. & Omuraliev, Arstan & Isaev, Ruslan & Wang, Zhenxuan, 2023. "Impacts of electricity quality improvements: Experimental evidence on infrastructure investments," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    3. João Pedro Vieira & Ricardo Dahis & Juliano Assunção, 2023. "The Role of Sanctions and Spillovers in Forest Conservation," Monash Economics Working Papers 2023-16, Monash University, Department of Economics.
    4. Teevrat Garg & Maulik Jagnani & Hemant K. Pullabhotla, 2022. "Structural transformation and environmental externalities," Papers 2212.02664, arXiv.org.
    5. Costa, Francisco J M & Szerman, Dimitri & Assunção, Juliano, 2024. "The Environmental Costs of Political Interference: Evidence from Power Plants in the Amazon," SocArXiv 6y7vk, Center for Open Science.
    6. Vieira, João Pedro & Dahis, Ricardo & Assunção, Juliano, 2023. "From Deforestation to Reforestation: The Role of General Deterrence in Changing Farmers' Behavior," SocArXiv vqpkm, Center for Open Science.
    7. Carreira, Igor & Costa, Francisco & Pessoa, João Paulo, 2024. "The deforestation effects of trade and agricultural productivity in Brazil," Journal of Development Economics, Elsevier, vol. 167(C).
    8. Brooks, Nina & Biswas, Debashish & Hossin, Raduan & Yu, Alexander & Saha, Shampa & Saha, Senjuti & Saha, Samir K. & Luby, Stephen P., 2023. "Health consequences of small-scale industrial pollution: Evidence from the brick sector in Bangladesh," World Development, Elsevier, vol. 170(C).
    9. Uttam Paudel & Shiva Raj Adhikari & Krishna Prasad Pant, 2023. "Willingness to Pay for Environmental Quality Improvement Programs and Its Determinants: Empirical Analysis in Western Nepal," Sustainability, MDPI, vol. 15(3), pages 1-20, January.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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