Population density, pollution and growth

Abstract

We analyze a growth model where the damage of pollution depends on population density and the character of pollution. From the steady state rates of change, in the social optimum, of a neoclassical and a semi-endogenous growth model respectively, we conclude that the less responsive the damage of pollution is to population density, the more likely is a development path with positive growth in consumption per capita and declining perceived pollution per capita. Non-awareness of the character of pollution may thus give suboptimal solutions. In particular, the commonly held view that pollution is a pure public bad may lead to growth-rate targets that are lower than optimal. Finally, we find that the character of pollution does not influence the transitional dynamics qualitatively

Published in

Environmental and Resource Economics
2005, volume: 30, number: 4, pages: 465-484
Publisher: SPRINGER

SLU Authors

• Eriksson, Clas

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Social Sciences
Economics and Business


Publication identifier

DOI: https://doi.org/10.1007/s10640-004-5985-z

Permanent link to this page (URI)

https://res.slu.se/id/publ/7662