Economic Growth and the Environment: An Introduction to the Theory

ISBN : 9780198705420

Clas Eriksson
240 Pages
164 x 231 mm
Pub date
May 2015
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  • Sets out the key models
  • Shows how modern growth theory can be used to shed light on the relation between economic growth, natural resources, and the environment
  • Includes Exercises at the end of each chapter that help the reader master the models
  • Adopts a rule-of-thumb approach, as opposed to intertemporal optimization, so the reader can study difficult and important problems without the need for a difficult tool box
  • Clear progression- the chapters build on each other so the reader gets a solid knowledge of the topic
  • Features carefully chosen suggestions for further reading that give the student the possibility to progress, without finding the material too difficult

Economic Growth and the Environment explores the debate on how to reconcile economic growth with protection of the natural environment, and the closely related discussion on whether an increasing scarcity of natural resources will eventually force economic growth to cease. The debate focusses on whether environmental policies will benefit the economy or not, and is divided into growth optimists and growth pessimists. In general, economists have been optimistic and have pointed to the possibilities of technological progress and substitution, yet they also acknowledge that natural resources and environmental concern do restrict economic growth. The difficulty lies in quantifying the constraint to economic growth. Modern growth economists have constructed models to examine to what extent 'growth pessimism' is theoretically warranted. This book provides an introduction to some of these models, brings together the discussion between growth optimists and pessimists, and presents the theory behind their arguments. It aims to present models where both sides can meet and where both are able to derive expected results with the parameter values that they deem appropriate. From there, the discussions can turn to the empirical observations about these parameters.
This book will be of interest to advanced undergraduates in economics, microeconomics, economic growth, sustainable development, and environmental economics. Each chapter concludes with a set of Exercises designed to help the reader master the models.


3:The Solow Model
4:Endogenous Technological Change

6:Exhaustible Resources

7:Pollution Reduction by Abatement
8:Pollution Reduction by Directed Technological Change
9:Utility Maximization

About the author: 

Clas Eriksson is a professor in economics at Malardalen University College, Vasteras, Sweden. He obtained his PhD and associate professor (docent) degrees from Uppsala University.

"Eriksson consistently proves knowledgeable of the material he covers. Perhaps more importantly, he is adept at conveying it without excessive reliance on jargon. I came away with a much better understanding of the tensions between advancing economic growth and minimizing negative environmental externalities." - Christopher Nesseth, Monthly Labor Review

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