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Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity

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  • Bertinelli, Luisito
  • Strobl, Eric
  • Zou, Benteng

Abstract

We study the relationship between economic development and consumption of natural resources using a vintage capital model. Consumption of natural resources is assumed to generate pollution, part of which will be absorbed by nature's self-regeneration capacity. We find that during the transition dynamics, the shape of the pollution output relationship will depend on the parameter determining nature's self-regeneration capacity. Using footprint and biological capacity data, we show empirically in a repeated cross-section of countries that the shape of the pollution-output relationship indeed depends on countries' capacity to regenerate part of the resources they consume from nature.

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  • Bertinelli, Luisito & Strobl, Eric & Zou, Benteng, 2008. "Economic development and environmental quality: A reassessment in light of nature's self-regeneration capacity," Ecological Economics, Elsevier, vol. 66(2-3), pages 371-378, June.
    • Handle: RePEc:eee:ecolec:v:66:y:2008:i:2-3:p:371-378
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    Cited by:

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    2. Li, Sinan & Zhao, Xiaoqing & Pu, Junwei & Miao, Peipei & Wang, Qian & Tan, Kun, 2021. "Optimize and control territorial spatial functional areas to improve the ecological stability and total environment in karst areas of Southwest China," Land Use Policy, Elsevier, vol. 100(C).
    3. Gupta, Manash Ranjan & Barman, Trishita Ray, 2010. "Health, infrastructure, environment and endogenous growth," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 657-673, June.
    4. Luisito Bertinelli & Benteng Zou, 2010. "Transboundary Pollution and abatement," DEM Discussion Paper Series 10-07, Department of Economics at the University of Luxembourg.
    5. Evangelos V. Dioikitopoulos & Sugata Ghosh & Eugenia Vella, 2016. "Technological Progress, Time Perception and Environmental Sustainability," Working Papers 2016002, The University of Sheffield, Department of Economics.
    6. Gupta, Manash Ranjan & Barman, Trishita Ray, 2009. "Fiscal policies, environmental pollution and economic growth," Economic Modelling, Elsevier, vol. 26(5), pages 1018-1028, September.
    7. AZOMAHOU, Théophile & BOUCEKKINE, Raouf & NGUYEN-VAN, Phu, 2009. "Promoting clean technologies under imperfect competition," LIDAM Discussion Papers CORE 2009011, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    9. Bertinelli, Luisito & Camacho, Carmen & Zou, Benteng, 2014. "Carbon capture and storage and transboundary pollution: A differential game approach," European Journal of Operational Research, Elsevier, vol. 237(2), pages 721-728.
    10. Gao, Yanjie & Chen, Hang & Tauni, Muhammad Zubair & Alnafrah, Ibrahim & Yu, Jiaqi, 2024. "Unpacking the impact of financialization and globalization on environmental degradation in BRICS economies," Resources Policy, Elsevier, vol. 88(C).
    11. Trishita Ray Barman & Manash Ranjan Gupta, 2010. "Public Expenditure, Environment, and Economic Growth," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(6), pages 1109-1134, December.
    12. Liu, Yiming & Hao, Yu & Gao, Yixuan, 2017. "The environmental consequences of domestic and foreign investment: Evidence from China," Energy Policy, Elsevier, vol. 108(C), pages 271-280.
    13. Jinhua Wu & Can Wang & Xiong He & Chunshan Zhou & Hongwei Wang, 2024. "Nonlinear Effects of Land-Use Conflicts in Xinjiang: Critical Thresholds and Implications for Optimal Zoning," Land, MDPI, vol. 13(5), pages 1-24, May.
    14. Sun, Tao & Zhang, Hongwei & Wang, Yuan, 2013. "The application of information entropy in basin level water waste permits allocation in China," Resources, Conservation & Recycling, Elsevier, vol. 70(C), pages 50-54.
    15. Manash Ranjan Gupta & Priya Brata Dutta, 2022. "Taxation, capital accumulation, environment and unemployment in an efficiency wage model," Journal of Economics, Springer, vol. 135(2), pages 151-198, March.
    16. Gupta, Manash Ranjan & Barman, Trishita Ray, 2015. "Environmental Pollution, Informal Sector, Public Expenditure And Economic Growth," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 56(1), pages 73-91, June.
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