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Income and Environment: An Examination of Convergence

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  • Dinda, Soumyananda

Abstract

The effective policy prescription depends on the actual position of the economy. This paper search for evidence of the linkage between economic growth and environment. To be specific, the paper is intended to observe how economic growth is systematically linked to the position of the economy as well as environmental quality. This systematic link is a foundation for the convergence of an economy towards steady state and the paper concentrates on growth theory and convergence highlighting on relative factor intensities of the two production sectors in determining the transitional dynamics of the system. The model predicts that average growth rate of output is inversely related to the initial level of output and directly associated with initial base level of environment.

Suggested Citation

  • Dinda, Soumyananda, 2002. "Income and Environment: An Examination of Convergence," MPRA Paper 109262, University Library of Munich, Germany, revised 2003.
    • Handle: RePEc:pra:mprapa:109262
    as

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    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    4. Bond, Eric W. & Wang, Ping & Yip, Chong K., 1996. "A General Two-Sector Model of Endogenous Growth with Human and Physical Capital: Balanced Growth and Transitional Dynamics," Journal of Economic Theory, Elsevier, vol. 68(1), pages 149-173, January.
    5. Casey B. Mulligan & Xavier Sala-i-Martin, 1993. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 739-773.
    6. N. Gregory Mankiw & David Romer & David Weil, 1990. "A Contribution to the Empirics of Economic Growth," Working Papers 1990-24, Brown University, Department of Economics.
    7. E. Young Song, 2000. "The Return to Capital and Convergence in a Two Sector Model of Endogenous Growth," International Economic Journal, Taylor & Francis Journals, vol. 14(4), pages 143-163.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Convergence; Environment; Factor intensity; Growth Theory; Steady State; Transitional Dynamic;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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