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Environmental defensive expenditures, expectations and growth

Antoci, Angelo and Borghesi, Simone and Russu, Paolo (2005) Environmental defensive expenditures, expectations and growth. Population & Environment, Vol. 27 (2), p. 227-244. eISSN 1573-7810. Article.

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DOI: 10.1007/s11111-006-0019-0

Abstract

Nowadays many agents meet defensive expenditures to protect themselves against environmental deterioration. Such expenditures may contribute to support economic growth. Environmental degradation, in fact, may induce agents to work harder to replace depleted environmental goods with substitute goods. The consequent rise in the activity level may further deplete the environment, worsening the agents’ expectations on the future environmental quality and increasing their demand for substitute goods. To examine this issue, we adopt a simple model in which agents formulate expectations on the future environment that can be right or wrong and examine how such expectations influence capital accumulation and growth.

Item Type:Article
ID Code:2833
Status:Published
Refereed:Yes
Uncontrolled Keywords:Defensive expenditures, growth, environment, expectations
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:Springer Netherlands
eISSN:1573-7810
Deposited On:26 Aug 2009 11:33

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