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Economic Growth, Industrialization and the Environment

Jevan Cherniwchan

No 2010-28, Working Papers from Department of Economics, University of Calgary

Abstract: This paper argues the compositional shift from agricultural to industrial production - industrialization - is a central determinant of changes in environmental quality as economies develop. A simple two-sector model of neoclassical growth and the environment in a small open economy is developed to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 68 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 24% increase in the level of emissions per capita.

JEL-codes: O41 O44 Q56 (search for similar items in EconPapers)
Date: 2010-11-01
New Economics Papers: this item is included in nep-env and nep-res
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Citations: View citations in EconPapers (2)

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Journal Article: Economic growth, industrialization, and the environment (2012) Downloads
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