Lethal Effects of Pollution and Economic Growth: Efficiency of Abatement Technology

Asuka Oura, Yasukatsu Moridera and Koichi Futagami

The Japanese Economic Review, 2018, vol. 69, issue 2, 189-206

Abstract: The accumulation of pollution negatively impacts human health. Extreme increases in pollution, in particular, may have lethal implications for human beings, and, indeed, all living organisms. This paper thus devises a new model of economic growth that takes into account these lethal effects of accumulated pollution via a pollution threshold to show two key results. First, if an abatement technology is relatively inefficient, there exists a stationary steady state in which consumption and pollution stop growing. Second, if the abatement technology is sufficiently efficient, there exists a path along which pollution decreases at an accelerating rate until it finally reaches zero. In this case, consumption grows at a constant rate.

Date: 2018
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https://doi.org/10.1111/jere.12151

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Journal Article: Lethal Effects of Pollution and Economic Growth: Efficiency of Abatement Technology (2018)
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