Population Density, Pollution and Growth

Clas Eriksson () and Ficre Zehaie

Environmental & Resource Economics, 2005, vol. 30, issue 4, 465-484

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. Copyright Springer 2005

Keywords: economic growth; limits to growth; pollution; population density; semi-endogenous growth (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10640-004-5985-z

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