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Economic Growth and Environmental Degradation in Canada

In: The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s

Author

Listed:
  • Kathleen Day

    (Associate Professor of Economics, University of Ottawa)

  • R. Quentin Grafton

    (Director, Institute of the Environment and Associate Professor of Economics, University of Ottawa)

Abstract

In this chapter, Kathleen Day and R. Quentin Grafton explore the relationship between the economy and the environment. One approach sees economic growth leading to environmental degradation by imposing stresses on limited natural resources and ecosystems and by increasing emissions of pollutants. A second perspective argues the opposite relationship holds. Economic growth, once a certain level is achieved, leads to a cleaner environment as the higher income shifts societal preferences toward a better quality of the environment and at the same time provides the resources to produce such an environment. In addition, it is argued that economic growth is increasingly service-based, decoupling pollution from economic activity. The authors examine the relationship between economic growth and environmental degradation in Canada. The implication of their findings is that economic growth by no means resolves environmental problems.

Suggested Citation

  • Kathleen Day & R. Quentin Grafton, 2001. "Economic Growth and Environmental Degradation in Canada," The Review of Economic Performance and Social Progress, in: Andrew Sharpe, Executive Director & France St-Hilaire, Vice-President , Research & Keith Banting, Di (ed.), The Review of Economic Performance and Social Progress 2001: The Longest Decade: Canada in the 1990s, volume 1, Centre for the Study of Living Standards;The Institutute for Research on Public Policy.
    • Handle: RePEc:sls:repsls:v:1:y:2001:kdfqg
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    File URL: http://www.csls.ca/repsp/1/14-day.pdf
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    References listed on IDEAS

    as
    1. P Ekins, 1997. "The Kuznets Curve for the Environment and Economic Growth: Examining the Evidence," Environment and Planning A, , vol. 29(5), pages 805-830, May.
    2. Eric Neumayer, 2013. "Weak versus Strong Sustainability," Books, Edward Elgar Publishing, number 14993.
    3. Kathleen Day & R. Quentin Grafton, 2001. "Economic Growth and the Environment: A Canadian Perspective," Working Papers 0101E, University of Ottawa, Department of Economics.
    4. Anand, Sudhir & Kanbur, S. M. R., 1993. "Inequality and development A critique," Journal of Development Economics, Elsevier, vol. 41(1), pages 19-43, June.
    5. Andrew Sharpe, 1999. "A Survey of Indicators of Economic and Social Well-being," CSLS Research Reports 99wb, Centre for the Study of Living Standards.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. R. Quentin Grafton & Stephen Knowles, 2002. "Social Capital and National Environmental Performance: A Cross-sectional Analysis," Economics and Environment Network Working Papers 0206, Australian National University, Economics and Environment Network.

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    More about this item

    Keywords

    Growth; Environment; Emissions; Emission; Pollution; Pollutants; Pollutant; Natural Resources; Natural Resource; Non-renewable; Nonrenewable; Renewable;
    All these keywords.

    JEL classification:

    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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