Economic growth Environment and Climate change
The purpose of this paper is to shed light on the links between economic growth, environment and climate change, as an analytical input to Sida’s (the Swedish International Development Cooperation Agency) strategy on growth in development cooperation. The summary of evidence is primarily based on recent research and focus on issues addressed in the research literature. Some underlying questions and assumptions provide a rationale for studying this issue; particularly interesting ones - addressed in this paper - include statements and views like: Growth is bad (alternatively: good, necessary) for attaining environmentally sustainable development (growth optimism/pessimism); Natural resource abundance is bad for growth (the resource curse hypothesis); Stringent environmental policies, combined with increased market liberalization and international trade, trigger migration of dirty industries in richer countries to poorer countries with more lax environmental regulation (the pollution haven hypothesis).
Author: Anders Ekbom and Emelie Dahlberg
Last modified: January 16, 2012