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Spese difensive e crescita economica: il ruolo delle aspettative ambientali

Antoci, Angelo and Borghesi, Simone and Russu, Paolo (2004) Spese difensive e crescita economica: il ruolo delle aspettative ambientali. Global and Local Economic Review, Vol. 7 , p. 53-77. eISSN 1974-5125. Article.

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Abstract

Nowadays many agents living in industrialised countries spend an increasing share of their income to defend against environmental deterioration. As many authors have pointed out, these environmental defensive expenditures may contribute to raise production and thus also the overall Gross Domestic Product of a country.
This work and the corresponding strand of research moves one step forward with respect to the existing literature, showing that defensive expenditures can generate not only a higher production level, but also a self-feeding growth process. Environmental degradation, in fact, may induce agents to work harder to replace depleted environmental goods with expensive 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 substitution mechanism between environmental and private goods, we adopt a simple model with a continuum of identical agents that live for two periods (today and tomorrow) and formulate expectations on the future state of the environment. Differently from previous contributions in this line of research, we assume a more general setting where agents' expectations on the future environment can be right or wrong and examine how such expectations influence capital accumulation and growth.

Item Type:Article
ID Code:4838
Status:Published
Refereed:Yes
Uncontrolled Keywords:Gross domestic product, environmental degradation, self-protection choices
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:Edizioni Tracce
eISSN:1974-5125
Deposited On:15 Nov 2010 14:40

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