Economic Growth and the Environment An Empirical Analysis

Is economic growth good for the environment? A number of economists have claimed that economic growth can benefit the environment, recruiting political support and finance for environmental policy measures. This view has received increasing support since

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Economy & Environment VOLUME 18

Scientific Advisory Board Scott Barrett, School ofAdvanced International Studies, Johns Hopkins University, Washington DC, U.S.A. Klaus Conrad, University of Mannheim, Mannheim, Germany David James, Ecoservices Pty. Ltd., Whale Beach, New South Wales, Australia Bengt J. Kristrom, University of Umea, Sweden Raymond Prince, Congressional Budget Office, U.S. Congress, Washington DC, U.S.A. Domenico Siniscalco, ENI-Enrico Mattei, Milano, Italy / University of Torino, Italy

The titles published in this series are listed at the end of this volume.

Economic Growth and the Environment An Empirical Analysis

by

Sander M. de Bruyn Vrije Universiteit, Amsterdam, The Netherlands

.....

"

SPRINGER-SCIENCE+BUSINESS MEDIA, B.V.

A c.I.P. Catalogue record for this book is available from the Library of Congress.

ISBN 978-94-010-5789-9 ISBN 978-94-011-4068-3 (eBook) DOI 10.1007/978-94-011-4068-3

Printed on acid-free paper

All Rights Reserved © 2000 Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers in 2000 Softcover reprint of the hardcover 1st edition 2000 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner.

Contents List of figures and tables

ix

Preface

Xl

Chapter 1. Economic growth and the environment: an introduction 1.1. The growth-versus-environment debate 1.2. A short historical overview of study approaches 1.3. Research framework 1.4. Plan of the book 1.5. Empirical applications and research methods employed

1 I 3 6 9 10

PART I: Theories and concepts

15

Chapter 2. The limits to growth debate 2.1. Introduction 2.2. Economic growth, welfare, public policy and limits 2.3. Resource availability as a limit to growth 2.4. Thermodynamic limits to growth 2.5. Ecosystem's limits to growth 2.6. Sustainable development as a limit to growth 2.7. Ethical considerations in the concept of sustainable development 2.8. Conclusions and discussion

17 17 18 22 26 28 30 35 38

Chapter 3. Interactions between economic and environmental systems 3.1. Introduction 3.2. A survey of modelling approaches 3.3. Problems in integrating models 3.4. Dimensions of industrial transformation 3.5. Conclusions

41 41 43 48 52 55

Chapter 4. 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7.

Delinking environmental impacts from economic growth: issues of scale and indicators Introduction Environmental scale analysis Scale and delinking: two hypotheses Environmental indicators Aggregation of environmental indicators International trade, transboundary pollution and environmental indicators Conclusions and linkages to other chapters in the book

v

57 57 58 61 64 67 70 73

PART II: Empirical analyses of growth and the environment

75

Chapter 5. The environmental Kuznets curve hypothesis 5. 1. Introduction 5.2. A survey of empirical studies testing the EKC 5.