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A Model of Consumption and Environmental Degradation: Making the case for sustainable consumer behaviour

Bahram Adrangi, K. Kathy Dhanda and Ronald Paul Hill

Journal of Human Development and Capabilities, 2004, vol. 5, issue 3, 417-432

Abstract: This paper develops and examines a model of the relationship between consumption and environmental degradation, using the per-capita Gross Domestic Product as the proxy for consumer behaviour and per-capita carbon dioxide emissions as the indicator of pollution. The time path of emissions and consumption are modelled within a dynamic framework, and the result is expressed as an optimization problem from which Hamiltonian conditions are derived. These conditions are analysed through the use of a phase diagram, and the empirical section of the paper reveals the relationship between carbon dioxide emissions and Gross Domestic Product values across nation-states as well as the United Nations classifications for development among countries. The paper closes with an examination of sustainable consumer behaviour that has global policy implications.

Keywords: Consumption; Pollution; Environment; Economic models (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1080/1464988042000277279

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