Economic Growth, Industrialization, and the Environment

Posted: 13 Jul 2013

Date Written: Nov 1, 2011

Abstract

In this paper, I argue the compositional shift from agricultural to industrial production – industrialization – is a central determinant of changes in environmental quality as economies develop. I develop a simple two-sector model of neoclassical growth and the environment in a small open economy to examine how industrialization affects the environment. The model is estimated using sulfur emissions data for 157 countries over the period 1970–2000. The results show the process of industrialization is a significant determinant of observed changes in emissions: a 1% increase in industry's share of total output is associated with an 11.8% increase in the level of emissions per capita.

Keywords: Environment, Economic growth, Industrialization, Pollution

JEL Classification: O41, O44, Q56

Suggested Citation

Cherniwchan, Jevan, Economic Growth, Industrialization, and the Environment (Nov 1, 2011). Resource and Energy Economics, Vol. 34, No. 4, 2012, University of Alberta School of Business Research Paper No. 2013-1205, Available at SSRN: https://ssrn.com/abstract=2293095

Jevan Cherniwchan (Contact Author)

University of Calgary ( email )

University Drive
Calgary, Alberta T2N 1N4
Canada

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