IDEAS home Printed from https://ideas.repec.org/p/ott/wpaper/0101e.html
   My bibliography  Save this paper

Economic Growth and the Environment: A Canadian Perspective

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0101E.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(2), pages 111-148.
    2. Minoru Kitahara & Toshihiro Matsumura, 2006. "Realized Cost-Based Subsidies For Strategic R&D Investments With "Ex Ante" And "Ex Post" Asymmetries," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 438-448.
    3. Poyago-Theotoky, Joanna, 1998. "R&D Competition in a Mixed Duopoly under Uncertainty and Easy Imitation," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 415-428, September.
    4. Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
    5. Lakdawalla, Darius & Sood, Neeraj, 2004. "Social insurance and the design of innovation incentives," Economics Letters, Elsevier, vol. 85(1), pages 57-61, October.
    6. Petrakis, Emmanuel & Poyago-Theotoky, Joanna, 2002. "R&D Subsidies versus R&D Cooperation in a Duopoly with Spillovers and Pollution," Australian Economic Papers, Wiley Blackwell, vol. 41(1), pages 37-52, March.
    7. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
    8. Karolina Ekholm & Johan Torstensson, 1997. "High-Technology Subsidies in General Equilibrium: A Sector-Specific Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 1184-1203, November.
    9. Miyagiwa, Kaz & Ohno, Yuka, 2002. "Uncertainty, spillovers, and cooperative R&D," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 855-876, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    environment; economic growth; Canada;

    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

    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:ott:wpaper:0101e. 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: (Diane Ritchot). General contact details of provider: http://edirc.repec.org/data/deottca.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.