IDEAS home Printed from https://ideas.repec.org/p/frz/wpaper/wp2008_07.rdf.html
   My bibliography  Save this paper

Distributive impact of structural change: does environmental degradation matter?

Author

Listed:
  • Angelo Antoci

    () (Università degli Studi di Sassari)

  • Paolo Russu

    (Università degli Studi di Sassari)

  • Elisa Ticci

    () (Università degli Studi di Firenze, Dipartimento di Scienze Economiche)

Abstract

Vulnerability to reduction of natural capital depends on defensive substitution possibilities that, in turn, are affected by the availability of other productive factors. However in several developing countries asset distribution tends to be highly skewed. Taking into account these elements, this paper proposes a model considering an economy polarized into two classes (the rich and the poor) and characterized by the following stylized facts: income and productivity of the rural poor is highly dependent on natural resources; labour remuneration in rural sector represents the opportunity cost for wage labour; the rich can partially substitute natural capital with physical capital accumulation and wage labour employment. In this context, agents differ for feed back mechanisms and interactions between their choices of production and environmental dynamics. Moreover environmental depletion may trigger economic transition, but the structural change is likely to result regressive.

Suggested Citation

  • Angelo Antoci & Paolo Russu & Elisa Ticci, 2008. "Distributive impact of structural change: does environmental degradation matter?," Working Papers - Economics wp2008_07.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2008_07.rdf
    as

    Download full text from publisher

    File URL: http://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp07_2008.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Weiming, Tian & Xiumei, Liu & Xia, Kang, 2004. "Social Viability Roles of the Agricultural Sector in China," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 1(1).
    2. Eliasson, Ludvik & Turnovsky, Stephen J., 2004. "Renewable resources in an endogenously growing economy: balanced growth and transitional dynamics," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1018-1049, November.
    3. Urvashi Narain & Shreekant Gupta & Klaas van ’t Veld, 2008. "Poverty and the Environment: Exploring the Relationship Between Household Incomes, Private Assets, and Natural Assets," Land Economics, University of Wisconsin Press, vol. 84(1), pages 148-167.
    4. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
    5. Heath, John & Binswanger, Hans, 1996. "Natural resource degradation effects of poverty and population growth are largely policy-induced: the case of Colombia," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 65-84, February.
    6. Koskela, Erkki & Ollikainen, Markku & Puhakka, Mikko, 2002. "Renewable Resources in an Overlapping Generations Economy Without Capital," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 497-517, May.
    7. Antoci, Angelo & Bartolini, Stefano, 1999. "Negative externalities as the engine of growth in an evolutionary context," MPRA Paper 13908, University Library of Munich, Germany.
    8. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Working Papers 0025, University of Washington, Department of Economics.
    9. Antoci, Angelo & Galeotti, Marcello & Russu, Paolo, 2005. "Consumption of private goods as substitutes for environmental goods in an economic growth model," MPRA Paper 13664, University Library of Munich, Germany.
    10. Antoci, Angelo, 2009. "Environmental degradation as engine of undesirable economic growth via self-protection consumption choices," Ecological Economics, Elsevier, vol. 68(5), pages 1385-1397, March.
    11. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    12. Dasgupta, Partha, 2001. "Human Well-Being and the Natural Environment," OUP Catalogue, Oxford University Press, number 9780199247882.
    13. Gustavo Anríquez & Ramón López, 2007. "Agricultural growth and poverty in an archetypical middle income country: Chile 1987-2003," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 191-202, March.
    14. Gardner Brown, 2000. "Renewable Natural Resource Management and Use Without Markets," Discussion Papers in Economics at the University of Washington 0025, Department of Economics at the University of Washington.
    15. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    16. Angelo Antoci & Paolo Russu & Elisa Ticci, 2008. "Structural Change, Environment and Well-being: Interactions Between Production and Consumption Choices of the Rich and the Poor in Developing Countries," Working Papers 2008.48, Fondazione Eni Enrico Mattei.
    17. Javier Escobal & Carmen Ponce, 2003. "The benefits of rural roads. Enhancing income opportunities for the rural poor," Documentos de Investigación dt40b, Grupo de Análisis para el Desarrollo (GRADE).
    18. Lopez, Ramon, 2003. "The Policy Roots of Socioeconomic Stagnation and Environmental Implosion: Latin America 1950-2000," World Development, Elsevier, vol. 31(2), pages 259-280, February.
    19. Cavendish, William, 2000. "Empirical Regularities in the Poverty-Environment Relationship of Rural Households: Evidence from Zimbabwe," World Development, Elsevier, vol. 28(11), pages 1979-2003, November.
    20. Angelo Antoci & Stefano Bartolini, 1997. "Externalities and Growth in an Evolutionary Game," Department of Economics Working Papers 9710, Department of Economics, University of Trento, Italia.
    21. Fisher, Monica, 2004. "Household welfare and forest dependence in Southern Malawi," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 135-154, May.
    22. Adrian Wood & Kersti Berge, 1997. "Exporting manufactures: Human resources, natural resources, and trade policy," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 35-59.
    23. Antoci, Angelo & Russu, Paolo & Ticci, Elisa, 2008. "Structural change, economic growth and environmental dynamics with heterogeneous agents," MPRA Paper 13668, University Library of Munich, Germany.
    24. Lopez, Ramon E. & Anriquez, Gustavo & Gulati, Sumeet, 2007. "Structural change and sustainable development," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 307-322, May.
    25. Gardner M. Brown, 2000. "Renewable Natural Resource Management and Use without Markets," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 875-914, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Angelo Antoci & Paolo Russu & Elisa Ticci, 2011. "Investement inflows and sustainable development in a natural resource-dependent economy," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 0311, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
    2. repec:eee:streco:v:41:y:2017:i:c:p:64-77 is not listed on IDEAS
    3. Angelo Antoci & Paolo Russu & Serena Sordi & Elisa Ticci, 2012. "The interaction between natural resources- and physical capital-intensive sectors in a behavioral model of economic growth," Department of Economics University of Siena 661, Department of Economics, University of Siena.

    More about this item

    Keywords

    structural change; environmental externalities; economic development; poverty alleviation.;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:frz:wpaper:wp2008_07.rdf. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giorgio Ricchiuti). General contact details of provider: http://edirc.repec.org/data/defirit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.