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Economic Growth and the Environment: A Canadian Perspective

Author

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  • Kathleen Day

    (Department of Economics, University of Ottawa)

  • R. Quentin Grafton

    (Department of Economics, University of Ottawa & Institute of the Environment)

Abstract

The paper examines the relationship between economic growth and environmental degradation in Canada. Reduced form models are estimated to measure the relationship between GDP and 10 measures of environmental degradation. The reduced form results provide little support for the existence of an Environmental Kuznets Curve (EKC), the view that environmental degradation initially rises with GDP per capita, but reaches a turning point, and then declines. The data are tested for the presence of unit roots and for the existence of cointegration between each of the measures of environmental degradation and income. Cointegration and causality tests indicate that some long-term relationship exists between most measures of environmental degradation and economic growth and that this relationship, in several cases, is bi-directional. The results suggest that a sectoral analysis of the causes of pollution that relate environmental measures to specific anthropogenic causes may provide a better approach to understanding the economic growth-environment relationship.

Suggested Citation

  • Kathleen Day & R. Quentin Grafton, 2001. "Economic Growth and the Environment: A Canadian Perspective," Working Papers 0101E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:0101e
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    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0101E.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kathleen Day & R. Quentin Grafton, 2001. "Economic Growth and Environmental Degradation in Canada," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.

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    More about this item

    Keywords

    environment; economic growth; Canada;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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