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Polluting Industrialization

Karine Constant (), Carine Nourry and Thomas Seegmuller ()

Working Papers from HAL

Abstract: Recently, many contributions have focused on the relationship between capital accumulation, growth and population dynamics, introducing fertility choice in macro-dynamic models. In this paper, we go one step further highlighting also the link with pollution. We develop a simple overlapping generations model with paternalistic altruism according to wealth and environmental concerns. One can therefore explain a simultaneous increase of capital intensity, population growth and pollution, namely a polluting industrialization. We show in addition that a permanent productivity shock, possibly associated to technological innovations, promotes such a polluting development process, escaping a trap where the economy is relegated to a low capital intensity, population growth and pollution.

Keywords: Growth; Population dynamics; Pollution; Altruism; Development (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-dge, nep-env and nep-res
Date: 2011-10-19
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00633608
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