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Modeling pollution and economic growth: the effect of a lethal threshold

Author

Listed:
  • Asuka Oura

    (Graduate School of Economics, Osaka University)

  • Yasukatsu Moridera

    (Graduate School of Economics, Osaka University)

  • Koichi Futagami

    (Graduate School of Economics, Osaka University)

Abstract

The accumulation of pollution negatively impacts human health. Extreme increases in pollution, in particular, may have lethal implications for human beings|and, indeed, all living organisms. This paper thus devises a new model of economic growth that takes into account these lethal effects of accumulated pollution via a pollution threshold to show two key results. First, if an abatement technology is relatively inefficient, there exists a stationary steady state in which consumption and pollution stop growing. Second, if the abatement technology is sufficiently efficient, there exists a path along which pollution decreases at an accelerating rate until finally reaching zero. In this case, consumption grows at a constant rate.

Suggested Citation

  • Asuka Oura & Yasukatsu Moridera & Koichi Futagami, 2015. "Modeling pollution and economic growth: the effect of a lethal threshold," Discussion Papers in Economics and Business 15-06, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1506
    as

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    File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1506.pdf
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    References listed on IDEAS

    as
    1. Francesco Ricci, 2007. "Channels of transmission of environmental policy to economic growth," Post-Print hal-03062228, HAL.
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    3. Ricci, Francesco, 2007. "Channels of transmission of environmental policy to economic growth: A survey of the theory," Ecological Economics, Elsevier, vol. 60(4), pages 688-699, February.
    4. Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Endogenous growth; Pollution disutility; Pollution abatement;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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