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A Rationale for the Right-To-Development Climate Policy Stance

Author

Listed:
  • Dorothée Charlier

    (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

  • Aude Pommeret

    (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)

  • Francesco Ricci

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

Abstract

We represent in a formal model a policy argument concerning the pertinence of the adoption of a restrictive environmental policy limiting the use of abundant fossil energy resources in a developing economy. This "Right-to-Develop" argument highlights the risk that such a policy may halt economic development, and therefore result in persistent environmental damages as well as consumption below potential. Confronted to a ceiling on cumulative emissions, the forward looking regulator will want to stimulate economic growth–and incidentally emissions– the more, the stricter the ceiling on pollution is. One assumption is crucial for the argument to hold: polluting fossil energy is an essential input over the early phase of economic development, but not in the later phases. Such a discontinuity could result from structural change. We provide empirical evidence on the plausibility of a discontinuity in the elasticity of aggregate output with respect to carbon dioxide emissions, using cross country data. It does not appear to be as strong as assumed in the model economy.

Suggested Citation

  • Dorothée Charlier & Aude Pommeret & Francesco Ricci, 2022. "A Rationale for the Right-To-Development Climate Policy Stance," Post-Print hal-03726350, HAL.
    • Handle: RePEc:hal:journl:hal-03726350
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    More about this item

    Keywords

    Developing countries; Fossil energy intensity; Pollution; Right to develop; Sober development;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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

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