IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc15/113208.html
   My bibliography  Save this paper

Green attitude and economic growth

Author

Listed:
  • Soretz, Susanne
  • Ott, Ingrid

Abstract

We analyse the interdependence between green attitude and equilibrium development of environmental quality in an endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more obvious. The time path of pollution as well as the evolution of equilibrium growth are shown to depend crucially on the determinants of green attitude. If green attitude improves with increasing wealth, e.g. as a consequence of an increase in environmental education, the economy converges to the sustainable growth path and in the long run, also the optimal level of environmental quality is realized. In contrast, pollution remains at a suboptimally high level if individual attitude towards the environment is influenced by pollution itself, that means, if individuals care the more about environmental issues the worse environmental quality.

Suggested Citation

  • Soretz, Susanne & Ott, Ingrid, 2015. "Green attitude and economic growth," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113208, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc15:113208
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/113208/1/VfS_2015_pid_376.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Grimaud, Andre, 1999. "Pollution Permits and Sustainable Growth in a Schumpeterian Model," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 249-266, November.
    2. Susanne Soretz, 2007. "Efficient Dynamic Pollution Taxation in an Uncertain Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 57-84, January.
    3. Fisher, Walter H & Turnovsky, Stephen J, 1998. "Public Investment, Congestion, and Private Capital Accumulation," Economic Journal, Royal Economic Society, vol. 108(447), pages 399-413, March.
    4. Smulders, Sjak & Gradus, Raymond, 1996. "Pollution abatement and long-term growth," European Journal of Political Economy, Elsevier, vol. 12(3), pages 505-532, November.
    5. Larry G. Epstein & Stanley E. Zin, 2013. "Substitution, risk aversion and the temporal behavior of consumption and asset returns: A theoretical framework," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 12, pages 207-239, World Scientific Publishing Co. Pte. Ltd..
    6. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-357, April.
    7. Glomm, Gerhard & Ravikumar, B., 1994. "Public investment in infrastructure in a simple growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 18(6), pages 1173-1187, November.
    8. Schumacher, Ingmar & Zou, Benteng, 2008. "Pollution perception: A challenge for intergenerational equity," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 296-309, May.
    9. Pautrel, Xavier, 2012. "Environmental Policy, Education And Growth: A Reappraisal When Lifetime Is Finite," Macroeconomic Dynamics, Cambridge University Press, vol. 16(5), pages 661-685, November.
    10. Epstein, Larry G & Zin, Stanley E, 1991. "Substitution, Risk Aversion, and the Temporal Behavior of Consumption and Asset Returns: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 263-286, April.
    11. Lucas Bretschger, 2018. "Greening Economy, Graying Society," CER-ETH Press, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich, edition 2, number 18-001.
    12. Eriksson, Clas, 2004. "Can green consumerism replace environmental regulation?--a differentiated-products example," Resource and Energy Economics, Elsevier, vol. 26(3), pages 281-293, September.
    13. Edward L. Glaeser, 2014. "The Supply of Environmentalism: Psychological Interventions and Economics," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(2), pages 208-229.
    14. Eriksson, Clas, 2013. "Economic Growth and the Environment: An Introduction to the Theory," OUP Catalogue, Oxford University Press, number 9780199663897, Decembrie.
    15. Edwards, John H. Y., 1990. "Congestion function specification and the "publicness" of local public goods," Journal of Urban Economics, Elsevier, vol. 27(1), pages 80-96, January.
    16. Eicher, Theo & Turnovsky, Stephen J, 2000. "Scale, Congestion and Growth," Economica, London School of Economics and Political Science, vol. 67(267), pages 325-346, August.
    17. Grimaud, Andre & Tournemaine, Frederic, 2007. "Why can an environmental policy tax promote growth through the channel of education?," Ecological Economics, Elsevier, vol. 62(1), pages 27-36, April.
    18. Schumacher, Ingmar, 2009. "The dynamics of environmentalism and the environment," Ecological Economics, Elsevier, vol. 68(11), pages 2842-2849, September.
    19. Tetsuo Ono, 2002. "The Effects of Emission Permits on Growth and the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 21(1), pages 75-87, January.
    20. Turnovsky, Stephen J., 2000. "Fiscal policy, elastic labor supply, and endogenous growth," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 185-210, February.
    21. Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February.
    22. Lucas Bretschger & Sjak Smulders, 2007. "Sustainable Resource Use and Economic Dynamics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 1-13, January.
    23. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    24. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
    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. Ke Liu & Yurong Qiao & Qian Zhou, 2021. "Analysis of China’s Industrial Green Development Efficiency and Driving Factors: Research Based on MGWR," IJERPH, MDPI, vol. 18(8), pages 1-22, April.
    2. Mohammad Nurul Alam & Osarodion Ogiemwonyi & Ibrahim. E. Hago & Noor Azlinna Azizan & Fariza Hashim & Md Sazzad Hossain, 2023. "Understanding Consumer Environmental Ethics and the Willingness to Use Green Products," SAGE Open, , vol. 13(1), pages 21582440221, January.
    3. Borissov, Kirill & Pakhnin, Mikhail & Puppe, Clemens, 2017. "On discounting and voting in a simple growth model," European Economic Review, Elsevier, vol. 94(C), pages 185-204.
    4. Armin Falk & Nora Szech, 2016. "Pleasures of Skill and Moral Conduct," CESifo Working Paper Series 5732, CESifo.
    5. Walheer, Barnabé, 2018. "Labour productivity growth and energy in Europe: A production-frontier approach," Energy, Elsevier, vol. 152(C), pages 129-143.
    6. Adam Cook & Isaac Ehrlich, 2018. "Was higher education a major channel through which the US became an economic superpower in the 20th century?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 515-553, October.
    7. Elena N. UNTARU & Ana ISPAS & Adina N. CANDREA, 2015. "THE INFLUENCE OF EU MEMBER COUNTRIES’ ECONOMIC DEVELOPMENT ON THEIR CITIZENS’ PRO-ENVIRONMENTAL ATTITUDES Abstract : The present paper aims to determine the influence of EU member countries’ eco," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(2), pages 1-8, july.
    8. Zhengda Li & Wanping Yang & Chengjun Wang & Yuesheng Zhang & Xiaoling Yuan, 2019. "Guided High-Quality Development, Resources, and Environmental Forcing in China’s Green Development," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    9. Hazem Ahmed Khairy & Yehia Elzek & Nadir Aliane & Mohamed Fathy Agina, 2023. "Perceived Environmental Corporate Social Responsibility Effect on Green Perceived Value and Green Attitude in Hospitality and Tourism Industry: The Mediating Role of Environmental Well-Being," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    10. Han, Myat Su & Hampson, Daniel Peter & Wang, Yonggui & Wang, Hong, 2022. "Consumer confidence and green purchase intention: An application of the stimulus-organism-response model," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Susanne Soretz, 2007. "Efficient Dynamic Pollution Taxation in an Uncertain Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 57-84, January.
    2. Ingrid Ott & Susanne Soretz, 2006. "Nachhaltige Entwicklung durch endogeneUmweltwahrnehmung," Working Paper Series in Economics 24, University of Lüneburg, Institute of Economics.
    3. Susanne Soretz, 2003. "Stochastic Pollution and Environmental Care in an Endogenous Growth Model," Manchester School, University of Manchester, vol. 71(4), pages 448-469, July.
    4. Francesco Ricci, 2007. "Environmental policy and growth when inputs are differentiated in pollution intensity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(3), pages 285-310, November.
    5. Ingrid Ott & Susanne Soretz, 2006. "Regional growth strategies: fiscal versus institutional governmental policies," Working Paper Series in Economics 30, University of Lüneburg, Institute of Economics.
    6. Silva, Susana & Soares, Isabel & Afonso, Oscar, 2013. "Economic growth and polluting resources: Market equilibrium and optimal policies," Economic Modelling, Elsevier, vol. 30(C), pages 825-834.
    7. Ott, Ingrid & Soretz, Susanne, 2008. "Growth strategies: Fiscal versus institutional policies," Economic Modelling, Elsevier, vol. 25(4), pages 605-622, July.
    8. Ingrid Ott, 2004. "Bureaucratic corruption and macroeconomic performance," Computing in Economics and Finance 2004 303, Society for Computational Economics.
    9. Ingrid Ott & Stephen J. Turnovsky, 2006. "Excludable and Non‐excludable Public Inputs: Consequences for Economic Growth," Economica, London School of Economics and Political Science, vol. 73(292), pages 725-748, November.
    10. Dioikitopoulos, Evangelos V. & Kalyvitis, Sarantis, 2008. "Public capital maintenance and congestion: Long-run growth and fiscal policies," Journal of Economic Dynamics and Control, Elsevier, vol. 32(12), pages 3760-3779, December.
    11. Turnovsky, S., 2000. "Growth in an Open Economy: some Recent Developments," Papers 5, Warwick - Development Economics Research Centre.
    12. Grimaud, André & Rouge, Luc, 2014. "Carbon sequestration, economic policies and growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 307-331.
    13. Afonso, Oscar, 2023. "Fiscal and monetary effects on environmental quality, growth, and welfare," Research in Economics, Elsevier, vol. 77(1), pages 202-219.
    14. Eriksson, Clas, 2018. "Phasing out a polluting input in a growth model with directed technological change," Economic Modelling, Elsevier, vol. 68(C), pages 461-474.
    15. Turnovsky, Stephen J. & Smith, William T., 2006. "Equilibrium consumption and precautionary savings in a stochastically growing economy," Journal of Economic Dynamics and Control, Elsevier, vol. 30(2), pages 243-278, February.
    16. Chen, Been-Lon & Lee, Shun-Fa, 2008. "Corrigendum to "Congestible public goods and local indeterminacy: A two-sector endogenous growth model": [Journal of Economic Dynamics & Control 31 (7) (2007) 2486-2518]," Journal of Economic Dynamics and Control, Elsevier, vol. 32(4), pages 1356-1356, April.
    17. Oueslati, Walid, 2015. "Growth and welfare effects of environmental tax reform and public spending policy," Economic Modelling, Elsevier, vol. 45(C), pages 1-13.
    18. Dagmar Nelissen & Till Requate, 2007. "Pollution-reducing and resource-saving technological progress," International Journal of Agricultural Resources, Governance and Ecology, Inderscience Enterprises Ltd, vol. 6(1), pages 5-44.
    19. Vasilev, Aleksandar, 2018. "Optimal fiscal policy with Epstein-Zin preferences and utility-enhancing government services: lessons from Bulgaria (1999-2016)," EconStor Preprints 183134, ZBW - Leibniz Information Centre for Economics.
    20. Kirschbaum, Birgit & Soretz, Susanne, 2017. "Human capital, pollution control, and endogenous growth," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168186, Verein für Socialpolitik / German Economic Association.

    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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

    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:zbw:vfsc15:113208. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.