Economic growth and the environment

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Title: Economic growth and the environment
Author: Saleh, Raya
Other contributor: University of Helsinki, Faculty of Social Sciences, Department of Political Science
Helsingin yliopisto, Valtiotieteellinen tiedekunta, Yleisen valtio-opin laitos
Helsingfors universitet, Statsvetenskapliga fakulteten, Institutionen för allmän statslära
Date: 2000-10-11
Language: en
Thesis level: master's thesis
Abstract: The conflict between economic growth and environmental quality is very complex. Many believe that environmental concerns depend on the GNP levels of countries. It is against this background that we formulated the problem of the study, to examine the complex relationship between externalities and income level using the overlapping generations model of economic growth and environmental externalities. According to the overlapping generations model the solution to externality problem is a function of individual choices and planner's policies. The model shows us that economies can have both economic growth and clean environment if the following conditions are fulfilled: First individuals have to give up a large amount of consumption in return for improvement in the environmental quality therefore and according to the overlapping generations model the individual decisions has long lasting effects on both factors productivity and environment. Second, the planner has to set policies to control population growth since population growth leads to low capital and poor environment. Third, the planner has to implement a tax transfer scheme which will be optimal to solve the externalities problem not for only the current generations but also for future generations as well. The overlapping generations model of economic growth and environmental quality provides theoretical explanations in analysing the competitive equilibrium in the steady-state. And obtain also the golden rule and achieve the optimal level of allocation. The model concludes that the optimal path towards pollution reduction is to keep a low population growth and low consumption in order to have a clean environment regardless the GNP level or the individuals income level since high consumption cause degradation of the environment.
Description: Endast sammandrag. Inbundna avhandlingar kan sökas i Helka-databasen ( Elektroniska kopior av avhandlingar finns antingen öppet på nätet eller endast tillgängliga i bibliotekets avhandlingsterminaler.Only abstract. Paper copies of master’s theses are listed in the Helka database ( Electronic copies of master’s theses are either available as open access or only on thesis terminals in the Helsinki University Library.Vain tiivistelmä. Sidottujen gradujen saatavuuden voit tarkistaa Helka-tietokannasta ( Digitaaliset gradut voivat olla luettavissa avoimesti verkossa tai rajoitetusti kirjaston opinnäytekioskeilla.
Subject: economic growth
environmental quality
overlapping generations model

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