Distributive impact of structural change: does environmental degradation matter?
Angelo Antoci,
Paolo Russu () and
Elisa Ticci ()
Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa
Abstract:
Vulnerability to reduction of natural capital depends on defensive substitution possibilities that, in turn, are affected by the availability of other productive factors. However in several developing countries asset distribution tends to be highly skewed. Taking into account these elements, this paper proposes a model considering an economy polarized into two classes (the rich and the poor) and characterized by the following stylized facts: income and productivity of the rural poor is highly dependent on natural resources; labour remuneration in rural sector represents the opportunity cost for wage labour; the rich can partially substitute natural capital with physical capital accumulation and wage labour employment. In this context, agents differ for feed back mechanisms and interactions between their choices of production and environmental dynamics. Moreover environmental depletion may trigger economic transition, but the structural change is likely to result regressive.
Keywords: structural change; environmental externalities; economic development; poverty alleviation. (search for similar items in EconPapers)
JEL-codes: D62 O11 O13 O15 O41 Q20 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2008
New Economics Papers: this item is included in nep-agr and nep-env
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Journal Article: Distributive impact of structural change: Does environmental degradation matter? (2009) 
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Persistent link: https://EconPapers.repec.org/RePEc:frz:wpaper:wp2008_07.rdf
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