Wealth Heterogeneity and Escape from the Poverty-Environment Trap
A mutual link between poverty and environmental degradation is examined in an overlapping generations model. Environmental quality affects labor productivity and wealth dynamics, whereas wealth distribution determines the degree to which agents rely on technology that has a large environmental load, and therefore the evolution of environmental quality. This interaction creates a "poverty-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 from the poverty-environment trap, although it can have negative effects on both the environment and output when not in the trap. Copyright 2007 Blackwell Publishing, Inc..
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 9 (2007)
Issue (Month): 6 (December)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=1097-3923|
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1097-3923|
References listed on IDEAS
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.:
- Abhijit V. Banerjee & Andrew F. Newman, 1990.
"Occupational Choice and the Process of Development,"
911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- 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 274-298, April.
- Thijs Zuidema & Andries Nentjes, 1997. "Health damage of air pollution: An estimate of a dose-response relationship for the Netherlands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(3), pages 291-308, April.
- 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.
- 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.
- 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 F. Tamura, 1990. "Human Capital, Fertility, and Economic Growth," NBER Working Papers 3414, National Bureau of Economic Research, Inc.
- Gary S. Becker & Kevin M. Murphy & Robert Tamura, "undated". "Human Capital, Fertility, and Economic Growth," University of Chicago - Population Research Center 90-5a, Chicago - Population Research Center.
- 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.
- Borghesi, Simone & Vercelli, Alessandro, 2003. "Sustainable globalisation," Ecological Economics, Elsevier, vol. 44(1), pages 77-89, February.
- Omer Moav, 2005.
"Cheap Children and the Persistence of Poverty,"
Royal Economic Society, vol. 115(500), pages 88-110, 01.
- Thomas Piketty, 1997. "The Dynamics of the Wealth Distribution and the Interest Rate with Credit Rationing," Review of Economic Studies, Oxford University Press, vol. 64(2), pages 173-189.
- Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
- Galor, Oded & Zeira, Joseph, 1988.
"Income Distribution and Macroeconomics,"
51644, University Library of Munich, Germany, revised 01 Sep 1989.
- Maoz, Yishay D & Moav, Omer, 1999. "Intergenerational Mobility and the Process of Development," Economic Journal, Royal Economic Society, vol. 109(458), pages 677-697, October.
- 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.
- 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.
- 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.
- Hopenhayn, Hugo A & Prescott, Edward C, 1992. "Stochastic Monotonicity and Stationary Distributions for Dynamic Economies," Econometrica, Econometric Society, vol. 60(6), pages 1387-1406, November.
- 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.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:bla:jpbect:v:9:y:2007:i:6:p:1041-1068. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.