The structural shift to green services
AbstractIn this paper I investigate the role of an increasingly demanded class of green services, characterised by having strong roots in local communities, high human labour intensity, flat labour productivity growth and a low impact on the environment. In order to do so, I build an endogenous growth model with a progressive manufacturing sector and a stagnant service sector. Productivity growth in the former sector is driven by the presence of a public stock of capital, representing infrastructure. The progressive sector also generates a negative externality on an open-access renewable resource that enters the households welfare function. I thus study the long-run behaviour of the economy and present a numerical example to analyse the transition during which structural change takes place. Results show the possibility of a conflict between growth and welfare by investigating the effects of a change in some relevant policy and technological parameters.
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Bibliographic InfoPaper provided by University of Pavia, Department of Economics and Management in its series DEM Working Papers Series with number 033.
Length: 29 pages
Date of creation: Feb 2013
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-16 (All new papers)
- NEP-DGE-2013-02-16 (Dynamic General Equilibrium)
- NEP-ENV-2013-02-16 (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.:
- Bartolini, Stefano & Bonatti, Luigi, 2002. "Environmental and social degradation as the engine of economic growth," Ecological Economics, Elsevier, Elsevier, vol. 43(1), pages 1-16, November.
- Ayres, Robert U., 2008. "Sustainability economics: Where do we stand?," Ecological Economics, Elsevier, Elsevier, vol. 67(2), pages 281-310, September.
- Luigi Bonatti & Emanuele Campiglio, 2009. "Mobility Systems and Economic Growth: a Theoretical Analysis of the Long-Term Effects of Alternative Transportation Policies," Department of Economics Working Papers, Department of Economics, University of Trento, Italia 0907, Department of Economics, University of Trento, Italia.
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