Download Economics of Pollution by Peter A. Victor (auth.) PDF

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By Peter A. Victor (auth.)

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Example text

This is another way of saying that economic growth is neutral with respect to pollution, an assumption that will be re-examined in due course. P. and the pollution associated with it, so that TI implies PI and T2 implies P2. By concentrating on the lower half of Fig. 6 it is possible to consider the implications of the growth path, OA, for social welfare. ) Inverting the lower quadrant and introducing a social indifference map, Fig. 7 is obtained. 2 "0 c. P. (or consumption per capita If the savings rate and population are held constant) FIG.

However, it has been forcefully 47 argued by Mishan [34] that economic growth in the western world has already begun to cause a decline in social welfare. There is little hope that such an argument can be said at present to be true or false. Hence, it is more sensible to withdraw from the highly aggregated approach used here and to recognise that the higher income groups (though not the very highest), having gained the fruits of economic growth in terms of consumer durables, are turning to improvements in the quality of the public environment as the most important potential source of increase in utility to them.

Vector f (1 x m) - an element 11 shows the payments for primary inputs by the jth industry. ) Scalar g - this scalar g shows the expenditure on primary inputs associated with final demand. Scalar h - this scalar h shows the total expenditure on primary inputs. Vector c' (1 x n) - an element c£ shows the total expenditure on the ith commodity. Vector e' (1 x m) - an element ej shows the total sales of the jth industry. Scalar q - this scalar shows the total expenditure on commodities and primary inputs by final demand.

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