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Environmental degradation as engine of undesirable economic growth via self-protection consumption choices

Antoci, Angelo (2009) Environmental degradation as engine of undesirable economic growth via self-protection consumption choices. Ecological Economics, Vol. 68 (5), p. 1385-1397. ISSN 0921-8009. Article.

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DOI: 10.1016/j.ecolecon.2008.09.009

Abstract

We analyze growth dynamics in an economy where the well-being of economic agents depends on three goods: leisure, a free access environmental good and a private good that can be consumed as a substitute for the environmental resource. The processes of production and consumption of the private good by each agent impose negative externalities on other agents through the depletion of the environmental good. This paper shows that, in such context, the existence of private substitutes for environmental goods may fuel an undesirable economic growth process. This process is driven by the continuous increase in agents' needs for private consumption generated by the progressive reduction in free consumption of the environmental good.

Item Type:Article
ID Code:1901
Status:Published
Refereed:Yes
Uncontrolled Keywords:Substitutes for environmental goods, environmental defensive expenditures, undesirable economic growth, negative externalities
Subjects:Area 13 - Scienze economiche e statistiche > SECS-S/06 Metodi matematici dell'economia e delle scienze attuariali e finanziarie
Divisions:001 Università di Sassari > 01 Dipartimenti > Economia, impresa, regolamentazione
Publisher:Elsevier
ISSN:0921-8009
Deposited On:18 Aug 2009 10:06

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