Wealth Heterogeneity and Escape from the Poverty-Environment Trap
AbstractA mutual link between poverty and environmental degradation is examined in an overlapping generations model with environmental externality, human capital, and credit constraints. Environmental quality affects labor productivity and thus wealth dynamics, whereas wealth distribution determines the degree to which agents rely upon natural resources and therefore the evolution of environmental quality. This interaction creates a epoverty-environment trap,' where a deteriorated environment lowers income, which in turn accelerates environmental degradation. We show that greater wealth heterogeneity is the key to escaping the poverty-environment trap, although it has negative effects both on the environment and output when not in the trap.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 05-09.
Length: 30 pages
Date of creation: May 2005
Date of revision:
Poverty trap; Environmental degradation; Wealth distribution; Human capital.;
Other versions of this item:
- Masako Ikefuji & Ryo Horii, 2007. "Wealth Heterogeneity and Escape from the Poverty-Environment Trap," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(6), pages 1041-1068, December.
- Masako Ikefuji & Ryo Horii, 2005. "Wealth Heterogeneity and Escape from the Poverty-Environment Trap," Development and Comp Systems 0505001, EconWPA.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-06-05 (All new papers)
- NEP-DEV-2005-06-05 (Development)
- NEP-ENV-2005-06-05 (Environmental Economics)
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.:
- Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June.
- Ann L. Owen & David N. Weil, 1997.
"Intergenerational Earnings Mobility, Inequality, and Growth,"
NBER Working Papers
6070, National Bureau of Economic Research, Inc.
- Owen, Ann L. & Weil, David N., 1998. "Intergenerational earnings mobility, inequality and growth," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 71-104, February.
- Torras, Mariano & Boyce, James K., 1998. "Income, inequality, and pollution: a reassessment of the environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 25(2), pages 147-160, May.
- Oded Galor & Joseph Zeira, 2013.
"Income Distribution and Macroeconomics,"
2013-12, Brown University, Department of Economics.
- Gary S. Becker & Kevin M. Murphy & Robert F. Tamura, 1990.
"Human Capital, Fertility, and Economic Growth,"
NBER Working Papers
3414, National Bureau of Economic Research, Inc.
- Becker, Gary S & Murphy, Kevin M & Tamura, Robert, 1990. "Human Capital, Fertility, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S12-37, October.
- Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 323-350 National Bureau of Economic Research, Inc.
- Gary S. Becker & Kevin M. Murphy & Robert Tamura, . "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center.
- Banerjee, Abhijit V & Newman, Andrew F, 1993.
"Occupational Choice and the Process of Development,"
Journal of Political Economy,
University of Chicago Press, vol. 101(2), pages 274-98, April.
- Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Filmer, Deon & Pritchett, Lant H., 2002. "Environmental degradation and the demand for children: searching for the vicious circle in Pakistan," Environment and Development Economics, Cambridge University Press, vol. 7(01), pages 123-146, February.
- Aggarwal, Rimjhim & Netanyahu, Sinaia & Romano, Claudia, 2001. "Access to natural resources and the fertility decision of women: the case of South Africa," Environment and Development Economics, Cambridge University Press, vol. 6(02), pages 209-236, May.
- Evans, Mary F. & Smith, V. Kerry, 2005. "Do new health conditions support mortality-air pollution effects?," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 496-518, November.
- Hopenhayn, Hugo A & Prescott, Edward C, 1992. "Stochastic Monotonicity and Stationary Distributions for Dynamic Economies," Econometrica, Econometric Society, vol. 60(6), pages 1387-406, November.
- Moav, Omer, 2001.
"Cheap Children and the Persistence of Poverty,"
CEPR Discussion Papers
3059, C.E.P.R. Discussion Papers.
- Moav, Omer, 2002. "Income distribution and macroeconomics: the persistence of inequality in a convex technology framework," Economics Letters, Elsevier, vol. 75(2), pages 187-192, April.
- Piketty, Thomas, 1997. "The Dynamics of the Wealth Distribution and the Interest Rate with Credit Rationing," Review of Economic Studies, Wiley Blackwell, vol. 64(2), pages 173-89, April.
- Galor, Oded & Tsiddon, Daniel, 1997.
" The Distribution of Human Capital and Economic Growth,"
Journal of Economic Growth,
Springer, vol. 2(1), pages 93-124, March.
- Galor, O. & Tsiddon, D., 1996. "The Distribution of Human Capital and Economic Growth," Papers 18-96, Tel Aviv - the Sackler Institute of Economic Studies.
- Thijs Zuidema & Andries Nentjes, 1997. "Health damage of air pollution: An estimate of a dose-response relationship for the Netherlands," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(3), pages 291-308, April.
- John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
- Borghesi, Simone & Vercelli, Alessandro, 2003. "Sustainable globalisation," Ecological Economics, Elsevier, vol. 44(1), pages 77-89, February.
- Duraiappah, Anantha K., 1998. "Poverty and environmental degradation: A review and analysis of the nexus," World Development, Elsevier, vol. 26(12), pages 2169-2179, December.
- Maoz, Yishay D & Moav, Omer, 1999. "Intergenerational Mobility and the Process of Development," Economic Journal, Royal Economic Society, vol. 109(458), pages 677-97, October.
- Natacha Raffin, 2009. "Environmental health and education : Towards sustainable growth," Post-Print halshs-00384500, HAL.
- Fabio Mariani & Agustin Pérez-Barahona & Natacha Raffin, 2008.
"Life expectancy and the environment,"
UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers)
- Fabio Mariani & Agustin Pérez-Barahona & Natacha Raffin, 2008. "Life expectancy and the environment," Documents de travail du Centre d'Economie de la Sorbonne v08048, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Mariani, Fabio & Pérez-Barahona, Agustín & Raffin, Natacha, 2009. "Life Expectancy and the Environment," IZA Discussion Papers 4564, Institute for the Study of Labor (IZA).
- repec:hal:journl:halshs-00492178 is not listed on IDEAS
- Bhattacharya, Haimanti & Innes, Robert, 2006. "Is There a Nexus between Poverty and Environment in Rural India?," 2006 Annual meeting, July 23-26, Long Beach, CA 21201, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Eugenia Vella & Evangelos Dioikitopoulos & Sarantis Kalyvitis, .
"Green Spending Reforms, Growth and Welfare with Endogenous Subjective Discounting,"
DEOS Working Papers
1335, Athens University of Economics and Business.
- Eugenia Vella & Evangelos V. Dioikitopoulos & Sarantis Kalyvitis, 2012. "Green Spending Reforms, Growth and Welfare with Endogenous Subjective Discounting," DEGIT Conference Papers c017_045, DEGIT, Dynamics, Economic Growth, and International Trade.
- Horii, Ryo & Ikefuji, Masako, 2014. "Environment and Growth," MPRA Paper 53624, University Library of Munich, Germany.
- Hamdani, Nisar Hussain & Shah, Syed Akhter Hussain, 2005. "Earthquake 2005: Some Implications for Environment and Human Capital," MPRA Paper 9519, University Library of Munich, Germany.
- Emeline Bezin, 2013. "The dynamics of environmental concern and the evolution of pollution," Working Papers SMART - LERECO 201309, INRA UMR SMART.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Atsuko SUZUKI).
If references are entirely missing, you can add them using this form.