Autori
Privileggi, Fabio
Marsiglio, Simone

Titolo
On the Economic Growth and Environmental Trade-Off: a Multi-Objective Analysis.
Periodico
Università degli studi di Torino. Dip. Di Economia e Statistica Cognetti de Martiis. Working paper series
Anno: 2018 - Volume: 7 - Fascicolo: 13 - Pagina iniziale: 1 - Pagina finale: 27

We develop a multicriteria approach, based on a scalarization technique, in order to analyze the trade off between economic growth and environmental outcomes in a framework in which the economy and environment relation is bidirectional. On the one hand, economic growth by timulating production activities gives rise to emissions of pollutants which deteriorate the environment. On the other hand, the environment affects economic activities since pollution generates a production externality determining how much output the economy can produce and reducing welfare. In this setting we show that optimality dictates an initial overshooting followed by economic degrowth and rising pollution. This implies that independently of the relative importance of economic and environmental factors, it is paradoxically optimal for the economy to asymptotically reach the maximum pollution level that the environment is able to bear.



Testo completo: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2018dip/wp_13_2018.pdf

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