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On Impatience, Economic Growth and the Environmental Kuznets Curve: A Dynamic Analysis of Resource Management

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  • Jean-Paul Chavas

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Abstract

The paper presents a dynamic analysis of natural resource management and investigates some key factors that affect optimal management and resource conservation.Using a recursive specification of time preferences, we show how endogenous discounting and impatience can affect the motivation for both capital investments and environmental preservation. We examine the relationships between economic growth and environmental quality. Endogenous discounting provides new insights in the economic dynamics underlying the environmental Kuznets curve. By treating growth as endogenous, we examine how externalities and economic growth interact with each other. We investigate how economic development can contribute to an increased demand for environmental preservation. As an important new result, we also show how poverty can contribute to environmental degradation. Copyright Kluwer Academic Publishers 2004

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  • Jean-Paul Chavas, 2004. "On Impatience, Economic Growth and the Environmental Kuznets Curve: A Dynamic Analysis of Resource Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 28(2), pages 123-152, June.
  • Handle: RePEc:kap:enreec:v:28:y:2004:i:2:p:123-152 DOI: 10.1023/B:EARE.0000029913.49860.e3
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    Cited by:

    1. Di Vita, Giuseppe, 2008. "Differences in pollution levels among civil law countries: A possible interpretation," Energy Policy, Elsevier, vol. 36(10), pages 3774-3786, October.
    2. Berck, Peter & Levy, Amnon & Chowdhury, Khorshed, 2012. "An analysis of the world's environment and population dynamics with varying carrying capacity, concerns and skepticism," Ecological Economics, Elsevier, vol. 73(C), pages 103-112.
    3. Di Vita, Giuseppe, 2008. "Is the discount rate relevant in explaining the Environmental Kuznets Curve?," Journal of Policy Modeling, Elsevier, vol. 30(2), pages 191-207.
    4. 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.
    5. Cao, Dong & Wang, Lin & Wang, Yaozhong, 2011. "Endogenous fluctuations induced by nonlinear pollution accumulation in an OLG economy and the bifurcation control," Economic Modelling, Elsevier, vol. 28(6), pages 2528-2531.
    6. Stéphane Zuber, 2011. "The aggregation of preferences: can we ignore the past?," Theory and Decision, Springer, pages 367-384.
    7. Di Vita, Giuseppe, 2009. "Legal families and environmental protection: Is there a causal relationship?," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 694-707, September.
    8. COUTURE Stephane & REYNAUD Arnaud, 2006. "Multi-stand Forest Management Under a Climatic Risk: Do time and Risk Preferences Matter?," LERNA Working Papers 06.17.210, LERNA, University of Toulouse.
    9. Levy, Amnon & Berck, Peter, 2009. "Theoretical Implications of Endogenously Changing Carrying Capacity and Concern for the World’s Population and Environment," Economics Working Papers wp09-05, School of Economics, University of Wollongong, NSW, Australia.
    10. Di Vita, Giuseppe, 2008. "Capital accumulation, interest rate, and the income-pollution pattern. A simple model," Economic Modelling, Elsevier, vol. 25(2), pages 225-235, March.
    11. Figueroa, Eugenio & Pastén, Roberto, 2015. "Beyond additive preferences: Economic behavior and the income pollution path," Resource and Energy Economics, Elsevier, vol. 41(C), pages 91-102.

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