IDEAS home Printed from https://ideas.repec.org/a/cup/macdyn/v28y2024i5p1122-1149_6.html
   My bibliography  Save this article

Temporary prosperity or sustainable development: the long-run impact of developing pollution-intensive industries

Author

Listed:
  • Nian, Hongyu
  • Xu, Zhiwei
  • Yin, Haitao

Abstract

This paper proposes a dynamic model to capture the interaction among the environment, human capital accumulation, and economic growth. We emphasize the mechanism that pollution stock depresses human capital accumulation, which has received increasing support from empirical studies. The model predicts that the development of pollution-intensive industries can help an economy gear up a short-run prosperity, but it impairs the capability for long-run economic growth, trapping the economy at a low development level. The cost for a dirty economy to switch is expensive and even infeasible if the environmental degradation is irreversible. Policy interventions, such as tax on pollution and subsidy on human capital, can help alleviate but cannot eradicate the economic stagnation.

Suggested Citation

  • Nian, Hongyu & Xu, Zhiwei & Yin, Haitao, 2024. "Temporary prosperity or sustainable development: the long-run impact of developing pollution-intensive industries," Macroeconomic Dynamics, Cambridge University Press, vol. 28(5), pages 1122-1149, July.
    • Handle: RePEc:cup:macdyn:v:28:y:2024:i:5:p:1122-1149_6
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1365100523000408/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:macdyn:v:28:y:2024:i:5:p:1122-1149_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/mdy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.