Working Paper: NBER ID: w9597
Authors: William A. Brock; M. Scott Taylor
Abstract: The relationship between economic growth and the environment is not well understood: we have only limited understanding of the basic science involved and very limited data. Because of these difficulties it is especially important to develop a series of relatively simple theoretical models that generate stark predictions. This paper presents one such model where societies implement the Kindergarten rule of sustainable growth.' Following the Kindergarten rule means implementing zero emission technologies in either finite time or asymptotically. The underlying simplicity of the model allows us to provide new predictions linking the path of environmental quality to pollutant characteristics (stocks vs. flows; toxics vs. irritants) and primitives of the economic system. It also provides a novel Environmental Catch-up Hypothesis.
Keywords: No keywords provided
JEL Codes: H4; O0; Q2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| zero-emission technologies (Q55) | improved environmental quality (Q56) |
| improved environmental quality (Q56) | sustained economic growth (O29) |
| long-run economic growth (O49) | rising environmental quality (Q56) |
| income levels (J31) | environmental quality improvements (Q53) |
| pollutant characteristics (Q53) | environmental quality (Q50) |
| pollutant characteristics (Q53) | level and rate of change in environmental quality (Q56) |
| countries with initially poor environmental conditions (O13) | greater degradation (Q53) |
| countries with initially poor environmental conditions (O13) | tendency to catch up in environmental quality (O44) |