Antoci, Angelo and Borghesi, Simone (2010): Preserving or escaping? On the welfare effects of environmental self-protective choices.
Download (94kB) | Preview
In modern societies individuals often try to alleviate their personal damages from environmental degradation by increasing their consumption of private goods. Although this “self-protective” behavior is very frequent in industrial economies, insufficient attention has been paid to its economic and environmental consequences. In this paper we show that such a behavior can give rise to a self-reinforcing growth process in which environmental degradation increases economic growth and vice-versa, leading the economy on a welfare-reducing path. For this purpose, we first provide several examples of environmental self-protective choices to give a heuristic view of this phenomenon and then examine their effects through a two-islands evolutionary model that leads the reader beyond a purely intuitive understanding of the argument. Although the proposed model is deliberately very simple, it may provide some interesting insights on an aspect that has been mainly ignored in the literature so far.
|Item Type:||MPRA Paper|
|Original Title:||Preserving or escaping? On the welfare effects of environmental self-protective choices|
|Keywords:||Self-protective choices; defensive expenditures; environmental degradation; negative externalities; economic growth.|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q0 - General > Q01 - Sustainable Development
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q20 - General
|Depositing User:||Angelo Antoci|
|Date Deposited:||10. May 2010 12:53|
|Last Modified:||21. Feb 2013 07:34|
Antoci, A., 2009. Environmental degradation as engine of undesirable economic growth via self-protection consumption choices. Ecological Economics 68, 1385-1397.
Antoci, A., Bartolini, S., 1999. Negative Externalities as the Engine of Growth in an Evolutionary Context. Working paper No. 83.99, FEEM, Milan.
Antoci, A., Bartolini, S., 2004. Negative externalities and labor input in an evolutionary game. Environment and Development Economics 9, 1-22.
Antoci, A., Galeotti, M., Russu, P., 2005. Consumption of private goods as substitutes for environmental goods in an economic growth model. Nonlinear Analysis: Modelling and Control 10, 3-34.
Antoci, A., Galeotti, M., Russu, P., 2007. Undesirable economic growth via economic agents’ self-protection against environmental degradation. Journal of The Franklin Institute 344, 377-390.
Antoci, A., Borghesi, S., Galeotti, M., 2008. Should we replace the environment? Limits of economic growth in the presence of self-protective choices. International Journal of Social Economics 35, 283-297.
Antoci, A., Borghesi, S., 2010. Transferring negative externalities: feedback effects of self-protection choices in a two hemispheres model, in Nonlinear Dynamics in Economics, Finance and Social Sciences, Bischi G., Chiarella C., Gardini L. (Eds), Springer Verlag, Amsterdam.
Bartolini, S., Bonatti, L., 2002. Environmental and social degradation as the engine of economic growth. Ecological Economics 43, 1-16.
Bartolini, S., Bonatti, L., 2003. Undesirable growth in a model with capital accumulation and environmental assets. Environment and Development Economics 8, 11-30.
Bates, D., 2002. Environmental refugees? Classifying human migrations caused by environmental change. Population and Environment 23, 465-477.
Bird, J., 1987. The transferability and depletability of externalities. Journal of Environmental Economics and Management 14, 54-57.
Ciscel, D.H., 2001. The Economics of Urban Sprawl: Inefficiency as a Core Feature of Metropolitan Growth. Journal of Economic Issues, 35(2), 405-413.
Escofet, A., Bravo-Peña, L. C., 2007. Overcoming environmental deterioration through defensive expenditures: field evidence from Bahía del Tóbari (Sonora, México) and implications for coastal impact assessment. Journal of Environmental Management 84, 266-273.
Garrod, G., Willis, K.G., 1999. Economic Valuation of the Environment, Edward Elgar, Cheltenham, UK.
Hueting, R., 1980. New Scarcity and Economic Growth. More Welfare Through Less Production?, North Holland , Amsterdam.
Leipert, C., 1986. Social costs of economic growth. Journal of Economic Issues 20, 109-131.
Leipert, C., Simonis, U.E., 1988. Environmental damage - environmental expenditures: statistical evidence on the Federal Republic of Germany. International Journal of Social Economics 15, 37-52.
López, R. E., 2003. Growth, Equity and the Environment: Elements for a Development Strategy for Latin America. Mimeo, University of Maryland at College Park, USA.
Myers, N., 1997. Environmental refugees. Population and Environment 19,167-182.
Shibata, H., Winrich, J. S., 1983. Control of pollution when the offended defend themselves. Economica 50, 425-37.
Shogren, J.F., Crocker, T.D., 1991. Cooperative and non-cooperative protection against transferable and filterable externalities. Environmental and Resource Economics 1, 195-213.
United Nations,1993. Handbook of National Accounting: Integrated Environmental and Economic Accounting. Studies in Methods, Series F, No.61, Sales No. E. 93 XVII.12, United Nations, New York.
United Nations, Commission of the European Communities, International Monetary Fund, Organisation for Economic Cooperation and Development, World Bank, 2003. Handbook for Integrated Environmental and Economic Accounting. United Nations, New York.
Yin, J., Schlesinger, M. E., Stouffer R. J., 2009. Model projections of rapid sea-level rise on the northeast coast of the United States. Nature Geoscience 2, 262-266.
Weibull, J. W., 1995. Evolutionary Game Theory. The MIT Press, Cambridge, USA.