Demographic Transition Environmental Concern and the Kuznets Curve

Aznar-Marquez J. and José Ruiz-Tamarit

No 2005001, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: In an endogenous growth model with pollution and abatement we characterize the socially optimal solution. We find that the rate of growth depends negatively on the weight of environmental care in utility and positively on the population growth rate. We also find a trade-off between growth and environmental quality beyond which an environmental Kuznets curve is derived in the long term. This one emerges from the implications of the demographic transition for the rate of population growth, and the accompanying variation in the willingness to pay for environmental quality as the economy develops.

Keywords: Optimal Growth; Environment; Population Growth; Preferences (search for similar items in EconPapers)
JEL-codes: C61 C62 O41 Q5 (search for similar items in EconPapers)
Date: 2005-01-01
New Economics Papers: this item is included in nep-ene and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvec:2005001

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