Arbeitspapier
Sustainability traps: Patience and innovation
This paper argues that the joint relation between long-term orientation, environmental quality and innovation plays a key role in explaining environment-poverty traps. Based on empirical observations, we allow for the subjective discount rate to negatively depend on environmental quality in an R&D-driven endogenous growth model with local pollution externalities. Our model reconciles two empirical facts: i) multiple equilibria of economic and environmental development; ii) opposite responses to technological improvements depending on the initial equilibrium. Our results suggest that - in addition to traditional policies such as development aid and technology transfer - policies that aim at improving both the economic and the environmental dimension of sustainability, should also focus on changing individuals' long-term views in countries that face weak environmental conditions.
- Sprache
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Englisch
- Erschienen in
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Series: Economics Working Paper Series ; No. 20/330
Micro-Based Behavioral Economics: General‡
Macroeconomics: Consumption; Saving; Wealth
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Environment and Growth
Environmental Economics: Technological Innovation
Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
innovation
time preference
environmental poverty traps
economic poverty traps
Karydas, Christos
- DOI
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doi:10.3929/ethz-b-000393661
- Handle
- Letzte Aktualisierung
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20.09.2024, 08:21 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Dioikitopoulos, Evangelos V.
- Karydas, Christos
- ETH Zurich, CER-ETH - Center of Economic Research
Entstanden
- 2020