IDEAS home Printed from https://ideas.repec.org/p/bsl/wpaper/2021-12.html
   My bibliography  Save this paper

Climate Protection versus Economic Convergence?

Author

Listed:
  • Lengwiler, Yvan

    (University of Basel)

Abstract

Global economic convergence and protection of the climate are both worthwhile goals. Yet, there is an inherent tension between them. Greenhouse gases are a waste product that is often emitted in the production process. Limiting such emissions therefore hampers the accumulation of income and capital. I expand Solow's growth model to accommodate green house gases, and use this to estimate the contribution of such emissions to economic development. The sobering insight is that we would not have witnessed any convergence in the last 45 years if poorer countries had not increased greenhouse gas emissions.

Suggested Citation

  • Lengwiler, Yvan, 2021. "Climate Protection versus Economic Convergence?," Working papers 2021/12, Faculty of Business and Economics - University of Basel.
    • Handle: RePEc:bsl:wpaper:2021/12
    as

    Download full text from publisher

    File URL: https://edoc.unibas.ch/85420/1/2021_12_ClimateVersusConvergence_revised_.pdf
    Download Restriction: no
    File URL: https://edoc.unibas.ch/84835/
    File Function: original version
    Download Restriction: no
    File URL: https://edoc.unibas.ch/85420/
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    2. William D. Nordhaus, 1992. "Lethal Model 2: The Limits to Growth Revisited," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(2), pages 1-60.
    3. Moomaw, William R. & Unruh, Gregory C., 1997. "Are environmental Kuznets curves misleading us? The case of CO2 emissions," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 451-463, November.
    4. Kacprzyk, Andrzej & Kuchta, Zbigniew, 2020. "Shining a new light on the environmental Kuznets curve for CO2 emissions," Energy Economics, Elsevier, vol. 87(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Badunenko, Oleg & Galeotti, Marzio & Hunt, Lester C., 2021. "Better to grow or better to improve? Measuring environmental efficiency in OECD countries with a Stochastic Environmental Kuznets Frontier," FEEM Working Papers 316226, Fondazione Eni Enrico Mattei (FEEM).
    2. C. Seri & A. de Juan Fernandez, 2021. "The relationship between economic growth and environment. Testing the EKC hypothesis for Latin American countries," Papers 2105.11405, arXiv.org.
    3. B. Venkatraja, 2021. "Does China exhibit any evidence of an Environmental Kuznets Curve? An ARDL bounds testing approach," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 88-110,111-.
    4. Alvarez-Herranz, Agustin & Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Cantos, José María, 2017. "Energy innovation and renewable energy consumption in the correction of air pollution levels," Energy Policy, Elsevier, vol. 105(C), pages 386-397.
    5. Canfei He & Fenghua Pan & Yan Yan, 2012. "Is Economic Transition Harmful to China’s Urban Environment? Evidence from Industrial Air Pollution in Chinese Cities," Urban Studies, Urban Studies Journal Limited, vol. 49(8), pages 1767-1790, June.
    6. Jie HE, 2005. "Economic Determinants for China’s Industrial SO2 Emission: Reduced vs. Structural form and the role of international trade," Working Papers 200505, CERDI.
    7. Anver C. Sadath & Rajesh H. Acharya, 2019. "Economic growth and environmental degradation: How to balance the interests of developed and developing countries," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 25-47.
    8. Stern, David I. & Common, Michael S., 2001. "Is There an Environmental Kuznets Curve for Sulfur?," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 162-178, March.
    9. Matias Piaggio & Emilio Padilla & Carolina Roman, 2015. "The long-run relationshiop between C02 emissions and economic activity in a small open economy: Uruguay 1882-2010," Working Papers wpdea1506, Department of Applied Economics at Universitat Autonoma of Barcelona.
    10. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    11. Songhee Han & Hannah Jun, 2023. "Growth, emissions, and climate finance nexus for sustainable development: Revisiting the environmental Kuznets curve," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 510-527, February.
    12. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    13. Pascalau, Razvan & Qirjo, Dhimitri, 2017. "TTIP and the Environmental Kuznets Curve," MPRA Paper 80192, University Library of Munich, Germany.
    14. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    15. Al Mamun, Md. & Sohag, Kazi & Hannan Mia, Md. Abdul & Salah Uddin, Gazi & Ozturk, Ilhan, 2014. "Regional differences in the dynamic linkage between CO2 emissions, sectoral output and economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1-11.
    16. Zheng, Xinye & Yu, Yihua & Wang, Jing & Deng, Huihui, 2013. "Identifying the determinants and spatial nexus of provincial carbon intensity in China: A dynamic spatial panel approach," MPRA Paper 56088, University Library of Munich, Germany.
    17. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    18. Wang, Yiming & Zhang, Pei & Huang, Dake & Cai, Changda, 2014. "Convergence behavior of carbon dioxide emissions in China," Economic Modelling, Elsevier, vol. 43(C), pages 75-80.
    19. Yin, Jianhua & Zheng, Mingzheng & Chen, Jian, 2015. "The effects of environmental regulation and technical progress on CO2 Kuznets curve: An evidence from China," Energy Policy, Elsevier, vol. 77(C), pages 97-108.
    20. Atwi, Majed & Barberán, Ramón & Mur, Jesús & Angulo, Ana, 2018. "CO2 Kuznets Curve Revisited: From Cross-Sections to Panel Data Models," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 169-196.

    More about this item

    Keywords

    climate change; convergence; growth theory; growth accounting; green house gases; GHG; carbon emissions; pollution; poverty; natural resources.;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bsl:wpaper:2021/12. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: WWZ (email available below). General contact details of provider: https://edirc.repec.org/data/wwzbsch.html .

    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.