nach oben

Decisions in Economics and Finance

Erschienen in:

22.11.2018

Environmental depletion, defensive consumption and negative externalities

verfasst von: Alessandro Fiori Maccioni

Erschienen in: Decisions in Economics and Finance | Ausgabe 2/2018

Einloggen, um Zugang zu erhalten

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This paper analyses economic dynamics in a context in which the production and consumption choices of economic agents generate environmental degradation. Agents can defend themselves from environmental degradation by increasing the production and consumption of output, which is assumed to be a (perfect) substitute for environmental quality. We consider the cases in which agents can coordinate their actions or not, and we show that if the dynamics is conditioned by negative externalities (so that there is no coordination), then a self-reinforcing mechanism may occur leading to production and consumption levels higher than the socially optimal ones. A complete analysis of the dynamics and of the welfare properties of the stationary states is provided.

Vorheriger Artikel Global indeterminacy and equilibrium selection in a model with depletion of non-renewable resources

Nächster Artikel Competition and cooperation in the exploitation of the groundwater resource

This standard procedure (see Romer 1989) is widely used in the literature on positive and negative externalities.

To improve clarity, we omit the analysis of the case for which \(c \alpha -\beta N = 0\), because the resulting dynamics of the system is not robust to uncertainties or perturbations.

In the following, we will refer to the term ’sustainable’ to denote consumption patterns leading to a fixed point in which \(E>0\). Vice versa, we will use the term ’unsustainable’ to denote consumption patterns leading to \(E=0\).

Remember that we measure the quantity of private goods consumed in the economy by the effort that is necessary to produce them, that is, by \((l_1+l_2)N\).

Antoci, A.: Negative Externalities and Growth of the Activity Level. Working Paper No. 9308, National Research Group MURST on Nonlinear Dynamics and Applications to Economic and Social Sciences, University of Florence, Italy (1996)

Antoci, A.: Environmental degradation as engine of undesirable economic growth via self-protection consumption choices. Ecol Econ 68(5), 1385–1397 (2009)CrossRef

Antoci, A., Bartolini, S.: Negative Externalities as the Engine of Growth in an Evolutionary Context. Working Paper No. 83.99, FEEM, Milan (1999)

Antoci, A., Bartolini, S.: Negative externalities and labor input in an evolutionary game. J Environ Dev Econ 9, 1–22 (2004)CrossRef

Antoci, A., Borghesi, S.: Preserving or escaping? On the welfare effects of environmental self-protective choices. J Socio-Econ 41(2), 248–254 (2012)CrossRef

Antoci, A., Borghesi, S.: Environmental degradation, self-protection choices and coordination failures in a North–South evolutionary model. J Econ Interact Coord 5(1), 89–107 (2010)CrossRef

Antoci, A., Borghesi, S., Galeotti, M.: Should we replace the environment? Limits of economic growth in the presence of self-protective choices. Int J Soc Econ 35(4), 283–297 (2008)CrossRef

Antoci, A., Borghesi, S., Russu, P.: Environmental protection mechanisms and technological dynamics. Econ Model 29(3), 840–847 (2012)CrossRef

Antoci, A., Borghesi, S., Russu, P., Ticci, E.: Foreign direct investments, environmental externalities and capital segmentation in a rural economy. Ecol Econ 116, 341–353 (2015)CrossRef

Antoci, A., Borghesi, S., Sodini, M.: Water resource use and competition in an evolutionary model. Water Resour Manag 31(8), 2523–2543 (2017)CrossRef

Antoci, A., Russu, P., Sordi, S., Ticci, E.: Industrialization and environmental externalities in a Solow-type model. J Econ Dyn Control 47, 211–224 (2014)CrossRef

Bartolini, S., Bonatti, L.: Environmental and social degradation as the engine of economic growth. Ecol Econ 43(1), 1–16 (2002)CrossRef

Bird, P.J.: The transferability and depletability of externalities. J Environ Econ Manag 14(1), 54–57 (1987)CrossRef

Borghesi, S.: Water tradable permits: a review of theoretical and case studies. J Environ Plan Manag 57(9), 1305–1332 (2014)CrossRef

Borghesi, S., Giovannetti, G., Iannucci, G., Russu, P.: The dynamics of foreign direct investments in land and pollution accumulation. Environ. Resour. Econ. (2018). https://doi.org/10.1007/s10640-018-0263-7 CrossRef

Bürki, R., Abegg, B., Elsasser, H.: Climate change and tourism in the alpine regions of Switzerland. In: Amelung, B., et al. (eds.) Climate change and tourism: assessment and coping strategies. Maastricht, pp. 165–172 (2007)

Costanza, R., et al.: Time to leave GDP behind. Nature 505, 283–285 (2014)CrossRef

Davis, L.W., Gertler, P.J.: Contribution of air conditioning adoption to future energy use under global warming. Proc. Natl. Acad. Sci. 112(19), 5962–5967 (2015)CrossRef

Dile, Y.T., Karlberg, L., Temesgen, M., Rockström, J.: The role of water harvesting to achieve sustainable agricultural intensification and resilience against water related shocks in sub-Saharan Africa. Agric. Ecosyst. Environ. 181, 69–79 (2013)CrossRef

Di Vita, G.: Legal families and environmental protection: is there a causal relationship? J. Policy Model. 31, 694–707 (2009)CrossRef

Hirsch, F.: Social Limits to Growth. Harvard University Press, Cambridge (1976)CrossRef

Hueting, R.: New Scarcity and Economic Growth. More Welfare Through Less Production?. North Holland, Amsterdam (1980)

Kubiszewski, I., et al.: Beyond GDP: measuring and achieving global genuine progress. Ecol. Econ. 93, 57–68 (2013)CrossRef

Leipert, C.: National income and economic growth: the conceptual side of defensive expenditures. J. Econ. Issues 23(3), 843–56 (1989)CrossRef

Magnan, A.K., et al.: Addressing the risk of maladaptation to climate change. Wiley Interdiscip. Rev. Clim. Change 7(5), 646–665 (2016)CrossRef

Mangasarian, O.L.: Sufficient conditions for the optimal control of nonlinear systems. SIAM J. Control 4(1), 139–152 (1966)CrossRef

Marini, G., Scaramozzino, P.: Overlapping generations and environmental control. J. Environ. Econ. Manag. 29, 64–77 (1995)CrossRef

Martinet, V., Blanchard, F.: Fishery externalities and biodiversity: trade-offs between the viability of shrimp trawling and the conservation of Frigatebirds in French Guiana. Ecol. Econ. 68(12), 2960–2968 (2009)CrossRef

Perrings, C., Halkos, G.: Who cares about biodiversity? Optimal conservation and transboundary biodiversity externalities. Environ. Resour. Econ. 52(4), 585–608 (2012)CrossRef

Romer, P.M.: Capital accumulation in the theory of long-run growth. In: Barro, R.J. (ed.) Modern Business Cycle Theory. Basil Blackwell, Oxford (1989)

Shogren, J.F., Crocker, T.D.: Cooperative and noncoperative protection against transferable and filterable externalities. Environ. Resour. Econ. 1, 195–214 (1991)CrossRef

Sun, C., Kahn, M.E., Zheng, S.: Self-protection investment exacerbates air pollution exposure inequality in urban China. Ecol. Econ. 131, 468–474 (2017)CrossRef

United Nations: Transforming our world: The 2030 agenda for sustainable development. Resolution adopted by the General Assembly, 25 September 2015 (2015)

Titel: Environmental depletion, defensive consumption and negative externalities
verfasst von: Alessandro Fiori Maccioni
Publikationsdatum: 22.11.2018
Verlag: Springer International Publishing
Erschienen in: Decisions in Economics and Finance / Ausgabe 2/2018
Print ISSN: 1593-8883
Elektronische ISSN: 1129-6569
DOI: https://doi.org/10.1007/s10203-018-0226-z

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Weitere Artikel der Ausgabe 2/2018

A heterogeneous agent model of asset price dynamics with two time delays

A model of growth with inherited tastes

An evolutionary model with best response and imitative rules

Poverty trap, boom and bust periods and growth. A nonlinear model for non-developed and developing countries

A piecewise linear model of credit traps and credit cycles: a complete characterization

Reference group influence on binary choices dynamics