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Environmental Quality, Life Expectancy, and Sustainable Economic Growth

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  • Dimitrios Varvarigos

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Abstract

I construct a model of a growing economy with pollution. The analysis of the model shows that the interactions between capital accumulation, endogenous longevity and environmental quality determine both the long-run growth rate of the economy and the pattern of convergence (i.e., monotonic or cyclical) towards the balanced growth path. I argue that such interactions can provide a possible explanatory factor behind the, empirically observed, negative correlation of longrun growth with its short-term cycles. Furthermore, the model may capture the observed pattern whereby economic growth and mortality rates appear to be negatively related in the long-run, but positively related in the short-run.

Suggested Citation

  • Dimitrios Varvarigos, 2008. "Environmental Quality, Life Expectancy, and Sustainable Economic Growth," Discussion Papers in Economics 08/19, Department of Economics, University of Leicester.
  • Handle: RePEc:lec:leecon:08/19
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    File URL: http://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp08-19.pdf
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    Cited by:

    1. Aditya Goenka & Saqib Jafarey & William Pouliot, 2012. "Pollution, Mortality and Optimal Environmental Policy," Discussion Papers 12-05, Department of Economics, University of Birmingham.

    More about this item

    Keywords

    Environmental quality; longevity; economic growth; cycles;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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