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Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity

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  • Bertinelli, Luisito
  • Strobl, Eric
  • Zou, Benteng

Abstract

We study the relationship between economic development and consumption of natural resources using a vintage capital model. Consumption of natural resources is assumed to generate pollution, part of which will be absorbed by nature's self-regeneration capacity. We find that during the transition dynamics, the shape of the pollution output relationship will depend on the parameter determining nature's self-regeneration capacity. Using footprint and biological capacity data, we show empirically in a repeated cross-section of countries that the shape of the pollution-output relationship indeed depends on countries' capacity to regenerate part of the resources they consume from nature.

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  • Bertinelli, Luisito & Strobl, Eric & Zou, Benteng, 2008. "Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity," Ecological Economics, Elsevier, vol. 66(2-3), pages 371-378, June.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:371-378
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    1. 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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    1. Gupta, Manash Ranjan & Barman, Trishita Ray, 2010. "Health, infrastructure, environment and endogenous growth," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 657-673, June.
    2. Gao, Yanjie & Chen, Hang & Tauni, Muhammad Zubair & Alnafrah, Ibrahim & Yu, Jiaqi, 2024. "Unpacking the impact of financialization and globalization on environmental degradation in BRICS economies," Resources Policy, Elsevier, vol. 88(C).
    3. Mihaela Onofrei & Anca-Florentina Gavriluţă (Vatamanu) & Ionel Bostan & Bogdan Florin Filip & Claudia Laurența Popescu & Gabriela Jitaru, 2020. "Impacts of the Allocation of Governmental Resources for Improving the Environment. An Empirical Analysis on Developing European Countries," IJERPH, MDPI, vol. 17(8), pages 1-18, April.
    4. Manash Ranjan Gupta & Priya Brata Dutta, 2022. "Taxation, capital accumulation, environment and unemployment in an efficiency wage model," Journal of Economics, Springer, vol. 135(2), pages 151-198, March.
    5. Gupta, Manash Ranjan & Barman, Trishita Ray, 2015. "Environmental Pollution, Informal Sector, Public Expenditure And Economic Growth," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 56(1), pages 73-91, June.
    6. Bertinelli, Luisito & Camacho, Carmen & Zou, Benteng, 2014. "Carbon capture and storage and transboundary pollution: A differential game approach," European Journal of Operational Research, Elsevier, vol. 237(2), pages 721-728.
    7. Trishita Ray Barman & Manash Ranjan Gupta, 2010. "Public Expenditure, Environment, and Economic Growth," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(6), pages 1109-1134, December.
    8. Li, Sinan & Zhao, Xiaoqing & Pu, Junwei & Miao, Peipei & Wang, Qian & Tan, Kun, 2021. "Optimize and control territorial spatial functional areas to improve the ecological stability and total environment in karst areas of Southwest China," Land Use Policy, Elsevier, vol. 100(C).
    9. Jinhua Wu & Can Wang & Xiong He & Chunshan Zhou & Hongwei Wang, 2024. "Nonlinear Effects of Land-Use Conflicts in Xinjiang: Critical Thresholds and Implications for Optimal Zoning," Land, MDPI, vol. 13(5), pages 1-24, May.
    10. Liu, Yiming & Hao, Yu & Gao, Yixuan, 2017. "The environmental consequences of domestic and foreign investment: Evidence from China," Energy Policy, Elsevier, vol. 108(C), pages 271-280.
    11. Gupta, Manash Ranjan & Barman, Trishita Ray, 2009. "Fiscal policies, environmental pollution and economic growth," Economic Modelling, Elsevier, vol. 26(5), pages 1018-1028, September.
    12. Théophile T. Azomahou & Raouf Boucekkine & Phu Nguyen-Vanc, 2009. "Promoting clean technologies under imperfect competition," Working Papers 2009_06, Business School - Economics, University of Glasgow.
    13. Luisito Bertinelli & Benteng Zou, 2010. "Transboundary Pollution and abatement," DEM Discussion Paper Series 10-07, Department of Economics at the University of Luxembourg.
    14. Evangelos V. Dioikitopoulos & Sugata Ghosh & Eugenia Vella, 2016. "Technological Progress, Time Perception and Environmental Sustainability," Working Papers 2016002, The University of Sheffield, Department of Economics.
    15. repec:hit:hitjcm:v:56:y:2015:i:1:p:73-91 is not listed on IDEAS
    16. Bei Guan & Xiuqiong Liang & Yang Yang & Xiang Sun & Jiawei Wang & Danyi Wei & Bin Wang & Han Cheng, 2024. "Optimal allocation of water pollutant discharge permits based on Environmental Gini Coefficient (EGC): a case study of Qinhuai river basin in Nanjing, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(2), pages 5179-5198, February.
    17. Sun, Tao & Zhang, Hongwei & Wang, Yuan, 2013. "The application of information entropy in basin level water waste permits allocation in China," Resources, Conservation & Recycling, Elsevier, vol. 70(C), pages 50-54.
    18. Sun, Tao & Zhang, Hongwei & Wang, Yuan & Meng, Xiangming & Wang, Chenwan, 2010. "The application of environmental Gini coefficient (EGC) in allocating wastewater discharge permit: The case study of watershed total mass control in Tianjin, China," Resources, Conservation & Recycling, Elsevier, vol. 54(9), pages 601-608.

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