Munich Personal RePEc Archive

Income and Environment: An Examination of Convergence

Dinda, Soumyananda (2002): Income and Environment: An Examination of Convergence.

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The effective policy prescription depends on the actual position of the economy. This paper search for evidence of the linkage between economic growth and environment. To be specific, the paper is intended to observe how economic growth is systematically linked to the position of the economy as well as environmental quality. This systematic link is a foundation for the convergence of an economy towards steady state and the paper concentrates on growth theory and convergence highlighting on relative factor intensities of the two production sectors in determining the transitional dynamics of the system. The model predicts that average growth rate of output is inversely related to the initial level of output and directly associated with initial base level of environment.

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