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Economic growth, industrialization, and the environment

  • Cherniwchan, Jevan

In this paper, I argue the compositional shift from agricultural to industrial production – industrialization – is a central determinant of changes in environmental quality as economies develop. I develop a simple two-sector model of neoclassical growth and the environment in a small open economy to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 157 countries over the period 1970–2000. The results show the process of industrialization is a significant determinant of observed changes in emissions: a 1% increase in industry's share of total output is associated with an 11.8% increase in the level of emissions per capita.

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File URL: http://www.sciencedirect.com/science/article/pii/S0928765512000206
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Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 34 (2012)
Issue (Month): 4 ()
Pages: 442-467

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Handle: RePEc:eee:resene:v:34:y:2012:i:4:p:442-467
DOI: 10.1016/j.reseneeco.2012.04.004
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

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