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Environmental quality and economic development

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  • P Shapiro
  • T Miyao
  • T R Smith

Abstract

Economic growth invariably leads to environmental degradation. But in this paper it is shown that economic development may be necessary before a country will adopt a policy of environmental protection. Within the context of an optimal-policy model, this proposition is proved and an optimal policy is derived. It is shown that knowledge of preferences for environmental quality is necessary for such a policy of environmental protection. It is then shown how such preferences can be estimated from market demand. The estimation is carried out with select consumption data.

Suggested Citation

  • P Shapiro & T Miyao & T R Smith, 1979. "Environmental quality and economic development," Environment and Planning A, Pion Ltd, London, vol. 11(10), pages 1147-1156, October.
  • Handle: RePEc:pio:envira:v:11:y:1979:i:10:p:1147-1156
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