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Population growth in polluting industrialization

  • Constant, Karine
  • Nourry, Carine
  • Seegmuller, Thomas

Recently, many contributions have focused on the relationship between capital level, growth and population dynamics, introducing fertility choice in macro-dynamic models. In this paper, we go one step further highlighting also the link with pollution. We develop a simple overlapping generations model with paternalistic altruism according to wealth and environmental concerns. One can therefore explain a simultaneous increase in capital intensity, population growth and pollution, namely a polluting industrialization. We show in addition that a permanent productivity shock, possibly associated to technological innovations, promotes such a polluting development process, escaping a trap where the economy is relegated to low levels of capital intensity, population growth and pollution.

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File URL: http://www.sciencedirect.com/science/article/pii/S0928765513000328
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Article provided by Elsevier in its journal Resource and Energy Economics.

Volume (Year): 36 (2014)
Issue (Month): 1 ()
Pages: 229-247

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Handle: RePEc:eee:resene:v:36:y:2014:i:1:p:229-247
DOI: 10.1016/j.reseneeco.2013.05.004
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505569

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