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Population growth in polluting industrialization

Abstract : Recently, many contributions have focused on the relationship between capital level, growth and population dynamics, introducing fertility choice in macro-dynamic models. In this paper, we go one step further highlighting also the link with pollution. We develop a simple overlapping generations model with paternalistic altruism according to wealth and environmental concerns. One can therefore explain a simultaneous increase in capital intensity, population growth and pollution, namely a polluting industrialization. We show in addition that a permanent productivity shock, possibly associated to technological innovations, promotes such a polluting development process, escaping a trap where the economy is relegated to low levels of capital intensity, population growth and pollution.
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Submitted on : Tuesday, December 6, 2016 - 5:17:19 PM
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Karine Constant, Carine Nourry, Thomas Seegmuller. Population growth in polluting industrialization. Resource and Energy Economics, Elsevier, 2014, 36 (1), pp.229-247. ⟨10.1016/j.reseneeco.2013.05.004⟩. ⟨hal-01410650⟩



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