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Economic Growth and Environmental Resource Allocation

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Author Info
William K. Jaeger () (Williams College)
Van Kolpin
Abstract

The simple fact that environmental resources are endowments is found to have profound effects on their patterns of allocation with changes in income, population, and income inequality. For broad classes of theoretical models, and in Pareto efficient as well as decentralized economies, environmental quality is found to follow a U-shaped pattern with rising income. We examine population changes and variations in income inequality, and also find U-shaped patterns of behavior. Importantly, the marginal rate of substitution between consumption and environmental quality can generally be expected to rise monotonically with rising income. These results are found to have important policy implications.

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Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 187.

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Date of creation: Mar 2001
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Handle: RePEc:wil:wileco:187

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Keywords: economic growth; environmental quality; environmental Kuznets curve; population growth;

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  2. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
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  4. repec:ilo:ilaoep:238 is not listed on IDEAS
  5. Stern, David I. & Common, Michael S. & Barbier, Edward B., 1996. "Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development," World Development, Elsevier, vol. 24(7), pages 1151-1160, July. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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  8. James Andreoni & Arik Levinson, 1998. "The Simple Analytics of the Environmental Kuznets Curve," NBER Working Papers 6739, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Cropper, Maureen & Griffiths, Charles, 1994. "The Interaction of Population Growth and Environmental Quality," American Economic Review, American Economic Association, vol. 84(2), pages 250-54, May. [Downloadable!] (restricted)
  10. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September. [Downloadable!] (restricted)
  11. Birdsall, Nancy, 1988. "Economic approaches to population growth," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 12, pages 477-542 Elsevier. [Downloadable!] (restricted)
  12. Baland, Jean-Marie & Platteau, Jean-Philippe, 1997. "Wealth Inequality and Efficiency in the Commons: Part I: The Unregulated Case," Oxford Economic Papers, Oxford University Press, vol. 49(4), pages 451-82, October. [Downloadable!] (restricted)
  13. Srinivasan, T.N. & Robinson, J.A., 1995. "Long-Term Consequences of Population Growth: Technological Change, Natural Resources, and the Environment," Papers 748, Yale - Economic Growth Center.
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