Environmental externalities and immiserizing structural changes in an economy with heterogeneous agents
The way in which natural and physical capital are accumulated, distributed and harnessed underpins the functioning and sustainability of the productive system of each society as well as its social stratification. Significant changes in the interactions between natural and physical capital accumulation give rise to processes of structural change (SC) which affect not only sectoral composition of the productive system, but also social equity and environmental quality. We propose a taxonomy of different SCs on the basis of distributive, environmental and economic outcomes and we study a two-sector model with environmental externalities to identify under which conditions each SC can occur. Our model shows how the type of SC is shaped by the link between agents' heterogeneity in terms of productive asset endowment and their vulnerability to environmental degradation. In particular, we find that a SC associated with reduction in poverty and in environmental pressures can occur only if productivity of the physical capital-intensive sector increases but its rate of environmental impact remains relatively lower than that of the natural-capital intensive sector.
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.
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.:
- Gaurav Datt & Martin Ravallion, 1998.
"Farm productivity and rural poverty in India,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 34(4), pages 62-85.
- Cavendish, William, 2000. "Empirical Regularities in the Poverty-Environment Relationship of Rural Households: Evidence from Zimbabwe," World Development, Elsevier, vol. 28(11), pages 1979-2003, November.
- Robert E. Lucas, Jr., 2004. "Life Earnings and Rural-Urban Migration," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S29-S59, February.
- Shackleton, Charlie M. & Shackleton, Sheona E. & Buiten, Erik & Bird, Neil, 2007. "The importance of dry woodlands and forests in rural livelihoods and poverty alleviation in South Africa," Forest Policy and Economics, Elsevier, vol. 9(5), pages 558-577, January.
- Reardon, Thomas & Vosti, Stephen A., 1995. "Links between rural poverty and the environment in developing countries: Asset categories and investment poverty," World Development, Elsevier, vol. 23(9), pages 1495-1506, September.
- Moberg, Fredrik & Folke, Carl, 1999. "Ecological goods and services of coral reef ecosystems," Ecological Economics, Elsevier, vol. 29(2), pages 215-233, May.
- Edward B. Barbier, 2007. "Valuing ecosystem services as productive inputs," Economic Policy, CEPR;CES;MSH, vol. 22, pages 177-229, 01.
- Brander, James A & Taylor, M Scott, 1998. "The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use," American Economic Review, American Economic Association, vol. 88(1), pages 119-138, March.
- R. M. Solow, 1974.
"Intergenerational Equity and Exhaustible Resources,"
Review of Economic Studies,
Oxford University Press, vol. 41(5), pages 29-45.
- R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
- Babulo, Bedru & Muys, Bart & Nega, Fredu & Tollens, Eric & Nyssen, Jan & Deckers, Jozef & Mathijs, Erik, 2009. "The economic contribution of forest resource use to rural livelihoods in Tigray, Northern Ethiopia," Forest Policy and Economics, Elsevier, vol. 11(2), pages 123-131, March.
- Pasche, Markus, 2002. "Technical progress, structural change, and the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 42(3), pages 381-389, September.
- Swinton, Scott M. & Escobar, German & Reardon, Thomas, 2003. "Poverty and Environment in Latin America: Concepts, Evidence and Policy Implications," World Development, Elsevier, vol. 31(11), pages 1865-1872, November.
- Heubach, Katja & Wittig, Rüdiger & Nuppenau, Ernst-August & Hahn, Karen, 2011. "The economic importance of non-timber forest products (NTFPs) for livelihood maintenance of rural west African communities: A case study from northern Benin," Ecological Economics, Elsevier, vol. 70(11), pages 1991-2001, September.
- Antoci, Angelo & Galeotti, Marcello & Russu, Paolo, 2011. "Poverty trap and global indeterminacy in a growth model with open-access natural resources," Journal of Economic Theory, Elsevier, vol. 146(2), pages 569-591, March.
- Chao, Chi-Chur & Yu, Eden S H, 1997. "Foreign-Investment Tax and Tariff Policies in Developing Countries," Review of International Economics, Wiley Blackwell, vol. 5(1), pages 47-62, February.
- Alauddin, Mohammad, 2004. "Environmentalizing economic development: a South Asian perspective," Ecological Economics, Elsevier, vol. 51(3-4), pages 251-270, December.
- Kamanga, Penjani & Vedeld, Paul & Sjaastad, Espen, 2009. "Forest incomes and rural livelihoods in Chiradzulu District, Malawi," Ecological Economics, Elsevier, vol. 68(3), pages 613-624, January.
- Nikos Tsakiris & Panos Hatzipanayotou & Michael S. Michael, 2008. "Pollution, Capital Mobility and Tax Policies with Unemployment," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 223-236, 05.
- Behrens, Arno & Giljum, Stefan & Kovanda, Jan & Niza, Samuel, 2007. "The material basis of the global economy: Worldwide patterns of natural resource extraction and their implications for sustainable resource use policies," Ecological Economics, Elsevier, vol. 64(2), pages 444-453, December.
- Heath, John & Binswanger, Hans, 1996. "Natural resource degradation effects of poverty and population growth are largely policy-induced: the case of Colombia," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 65-84, February.
- Barbier, Edward B., 2010. "Poverty, development, and environment," Environment and Development Economics, Cambridge University Press, vol. 15(06), pages 635-660, December.
- Joseph Stiglitz, 1974. "Growth with Exhaustible Natural Resources: Efficient and Optimal Growth Paths," Review of Economic Studies, Oxford University Press, vol. 41(5), pages 123-137.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:81:y:2012:i:c:p:80-91. 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: (Shamier, Wendy)
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.