Working Paper: NBER ID: w29191
Authors: Seema Jayachandran
Abstract: Reducing global poverty and addressing climate change and other environmental crises are among the most important challenges facing humanity today. This review article discusses one way in which these problems are intertwined: economic development affects the environment. I synthesize recent microempirical research on the environmental effects of economic development in low- and middle-income countries. The studies that I discuss identify the causal effects of specific aspects of economic development such as greater household purchasing power, expanded access to credit, more secure property rights, technological progress, and stronger regulatory capacity. I conclude by outlining some gaps in the literature.
Keywords: No keywords provided
JEL Codes: O13; Q56
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| greater consumption of energy-intensive goods (E20) | higher pollution levels (Q53) |
| increased income (E25) | transition towards more land-intensive diets (Q18) |
| transition towards more land-intensive diets (Q18) | exacerbation of land use changes and deforestation (Q54) |
| access to capital (O16) | mixed effects on environmental outcomes (F64) |
| tightened credit access (G21) | deforestation reduction (Q23) |
| increased capital (E22) | more intensive land use and environmental degradation (R14) |
| increased household income (D19) | greater consumption of energy-intensive goods (E20) |
| increased household income (D19) | higher ownership of energy-consuming appliances (L68) |