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Download Environmental Kuznets Curves: A Study on the Economic Theory by Michael P. Vogel PDF

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By Michael P. Vogel

Environmental Kuznets Curves - the most arguable problems with present environmental economics - recommend that monetary development could lead on to environmental caliber advancements. Why and less than which conditions this can be so, are the questions addressed during this booklet. The technique taken is formal, utilizing recommendations of static and dynamic optimisation. moreover, the most assumptions, arguments and conclusions also are provided in a non-formel way.

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Additional info for Environmental Kuznets Curves: A Study on the Economic Theory and Political Economy of Environmental Quality Improvements in the Course of Economic Growth

Sample text

With a constant population size this means rising per capita income and, given a positive savings ratio, a growing per capita capital stock. In the real world one can also expect current consumption per head to increase when income per capita does. In combination with what has just been said about the relationship between A, X and K, and with last section's results, this leads to the following interpretation of the results. At early stages of economic growth people are poor, their consumption possibilities are modest.

E = dE / E . Based on this result Grossman [see also Grossman and Krueger (1993), pp. 14-15] distinguishes three effects which together determine how emissions behave over time. First, if sectoral shares si and the emission intensities ei remain constant, then emissions rise at the same rate as economic activity: E = F. This is the scale effect "feared by environmental pessimists: all else equal, an increase in output means an equiproportionate increase in pollution" [Grossman (1995), p. 20; italics in the original; see also Beckerman (1993), p.

If the marginal benefit of abatement was less than its marginal cost, it would be optimal for the households not to abate - the case of a corner solution which has been excluded here by assumption, but which will play a central role in later chapters. In that case abatement would lead to an opportunity loss equal to the difference between marginal benefit and marginal cost. 4 "Green" Net National Product Net national product (NNP), the sum of the value of current consumption and net investment, has for long been regarded as a measure of economic welfare.

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