Economic growth, industrialization, and the environment

Jevan Cherniwchan

Resource and Energy Economics, 2012, vol. 34, issue 4, 442-467

Abstract: In this paper, I argue the compositional shift from agricultural to industrial production – industrialization – is a central determinant of changes in environmental quality as economies develop. I develop a simple two-sector model of neoclassical growth and the environment in a small open economy to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 157 countries over the period 1970–2000. The results show the process of industrialization is a significant determinant of observed changes in emissions: a 1% increase in industry's share of total output is associated with an 11.8% increase in the level of emissions per capita.

Keywords: Environment; Economic growth; Industrialization; Pollution (search for similar items in EconPapers)
JEL-codes: O41 O44 Q56 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

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Working Paper: Economic Growth, Industrialization and the Environment (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:34:y:2012:i:4:p:442-467

DOI: 10.1016/j.reseneeco.2012.04.004

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