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QUANTIFICATION OF DECONTAMINATION COST AND ENVIRONMENTAL PROTECTION - A MACROECONOMIC APPROACH

Iuliana Militaru, Gabriela Piciu and Antoniu Predescu ()
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Iuliana Militaru: Romanian American University
Antoniu Predescu: Universitatea Spiru Haret, Râmnicu Vâlcea

Romanian Economic Business Review, 2013, vol. 8, issue 3.1, 106-113

Abstract: The pollution, as a global phenomenon, is the result of (continuous) current economic mentality’s influence, according to which the target to be achieved permanent is the profit maximization. At macroeconomic level, to achieve the constant target of profit maximization is to record economic growth. But, GDP does not include, in practice, externalities – e.g. polluting industrial activities; so, mechanism which generates both GDP and economic and social value of the pollution amplitude comprise at least one direct influence factor of economic growth. In conclusion, increasing the amplitude of pollution is obtainable only by positive contribution of the national economy, e.g. with net exports increasing.

Keywords: decontamination; GDP; pollution; propensity; consumption; multiplier (search for similar items in EconPapers)
Date: 2013
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