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Economic Growth, Industrialization and the Environment

  • Jevan Cherniwchan

    (University of Calgary)

This paper argues the compositional shift from agricultural to industrial production - industrialization - is a central determinant of changes in environmental quality as economies develop. A simple two-sector model of neoclassical growth and the environment in a small open economy is developed to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 68 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 24% increase in the level of emissions per capita.

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Paper provided by Department of Economics, University of Calgary in its series Working Papers with number 2010-28.

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Date of creation: 01 Nov 2010
Date of revision: 01 Nov 2010
Handle: RePEc:clg:wpaper:2010-28
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