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Economic Growth and the Environment with Clean and Dirty Consumption AgEcon
Orecchia, Carlo; Tessitore, Maria Elisabetta.
This paper aims to verify the existence of the Environmental Kuznets Curve (EKC) or inverted U-shaped relationship between economic growth and environmental degradation in the context of endogenous growth. An important feature of this study is that the EKC is examined in the presence of pollution as a by product of consumption activities; also, pollution is a stock variable rather than a flow and tends to accumulate over time. In order to highlight the role of consumption on the environment, consumers do not consider directly pollution in the maximization problem and are assumed to choose between two different consumption types, characterized by a different impact on the environment (i.e. dirty and clean consumption). We find that substitution of dirty...
Tipo: Working or Discussion Paper Palavras-chave: Environmental Kuznets Curve; Economic Growth; Pollution; Consumption; Consumption behaviour; Environmental Economics and Policy; C61; Q56; O44.
Ano: 2011 URL: http://purl.umn.edu/115734
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