Template-type: ReDIF-Paper 1.0
Author-Name: Marsiglio, Simone
Author-Email: simonem@uow.edu.au
Author-Name: Privileggi, Fabio
Author-Email: fabio.privileggi@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: On the Economic Growth and Environmental Trade-Off: a Multi-Objective Analysis.
Abstract: 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 stimulating 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.
Length: pages 27
Creation-Date: 2018-07
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2018dip/wp_13_2018.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201813