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Green attitude and economic growth

Author

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  • Ott, Ingrid
  • Soretz, Susanne
Abstract
We analyse the interdependence between green attitude and equilibrium development of environmental quality in an endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more obvious. The time path of pollution as well as the evolution of equilibrium growth are shown to depend crucially on the determinants of green attitude. If green attitude improves with increasing wealth, e.g. as a consequence of an increase in environmental education, the economy converges to the sustainable growth path and in the long run, also the optimal level of environmental quality is realized. In contrast, pollution remains at a suboptimally high level if individual attitude towards the environment is influenced by pollution itself, that means, if individuals care the more about environmental issues the worse environmental quality.

Suggested Citation

  • Ott, Ingrid & Soretz, Susanne, 2015. "Green attitude and economic growth," Working Paper Series in Economics 68, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    • Handle: RePEc:zbw:kitwps:68
    DOI: 10.5445/IR/1000047678
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    Cited by:

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    2. Adam Cook & Isaac Ehrlich, 2018. "Was higher education a major channel through which the US became an economic superpower in the 20th century?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 515-553, October.
    3. Borissov, Kirill & Pakhnin, Mikhail & Puppe, Clemens, 2017. "On discounting and voting in a simple growth model," European Economic Review, Elsevier, vol. 94(C), pages 185-204.
    4. Zhengda Li & Wanping Yang & Chengjun Wang & Yuesheng Zhang & Xiaoling Yuan, 2019. "Guided High-Quality Development, Resources, and Environmental Forcing in China’s Green Development," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    5. Falk, Armin & Szech, Nora, 2016. "Pleasures of skill and moral conduct," Discussion Papers, Research Unit: Economics of Change SP II 2016-301, WZB Berlin Social Science Center.
    6. Mohammad Nurul Alam & Osarodion Ogiemwonyi & Ibrahim. E. Hago & Noor Azlinna Azizan & Fariza Hashim & Md Sazzad Hossain, 2023. "Understanding Consumer Environmental Ethics and the Willingness to Use Green Products," SAGE Open, , vol. 13(1), pages 21582440221, January.
    7. Hazem Ahmed Khairy & Yehia Elzek & Nadir Aliane & Mohamed Fathy Agina, 2023. "Perceived Environmental Corporate Social Responsibility Effect on Green Perceived Value and Green Attitude in Hospitality and Tourism Industry: The Mediating Role of Environmental Well-Being," Sustainability, MDPI, vol. 15(6), pages 1-17, March.
    8. Walheer, Barnabé, 2018. "Labour productivity growth and energy in Europe: A production-frontier approach," Energy, Elsevier, vol. 152(C), pages 129-143.
    9. Han, Myat Su & Hampson, Daniel Peter & Wang, Yonggui & Wang, Hong, 2022. "Consumer confidence and green purchase intention: An application of the stimulus-organism-response model," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    10. Elena N. UNTARU & Ana ISPAS & Adina N. CANDREA, 2015. "THE INFLUENCE OF EU MEMBER COUNTRIES’ ECONOMIC DEVELOPMENT ON THEIR CITIZENS’ PRO-ENVIRONMENTAL ATTITUDES Abstract : The present paper aims to determine the influence of EU member countries’ eco," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(2), pages 1-8, july.

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    More about this item

    Keywords

    pollution; endogenous growth; green attitude;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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