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Economic Growth and Environmental Resource Allocation

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  • William K. Jaeger

    ()
    (Williams College)

  • Van Kolpin
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    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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    Bibliographic Info

    Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2001-14.

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    Date of creation: Mar 2001
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    Handle: RePEc:wil:wileco:2001-14

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    Related research

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

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