Can Economic Growth be Sustainable? The Case of EU27

Andreoni, Valeria (2013) Can Economic Growth be Sustainable? The Case of EU27. Journal of Global Policy and Governance, 1 (2). pp. 185-195. ISSN 2194-7740

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Since the economy is embedded on environment, and since the environment is an important factor of economic growth, the problem of pollutions and resources exhaustion is receiving increasing attention of economists. The question at stake is whether economic growth can be compatible with environmental quality. Testing the possibility of a sustainable economic growth, for an EU27 case study, this paper brings analytical value to this discussion. Considering a double function of natural capital, that is a provider of materials and an absorber of emissions, this paper relates air pollutant emissions and material input data to GDP in order to test the de-pollution and the dematerialization hypothesis. Based on technological progress and income elasticity of environmental quality demand, they depict a positive correlation between income growth and environmental quality. In order to test these hypotheses a quadratic and a cubic version of the Environmental Kuznets curve, that is the theoretical bases for de-pollution and de-materialization hypothesis, have been performed. The EU27 data about pollutant emissions, material consumption and GDP has been provided by EUROSTAT. Results show that, for EU27, economic growth increased the carbon dioxide emissions and the domestic material consumption.

Item Type: Article
Keywords: Sustainable economic growth – Environmental Kuznets curve – Dematerialization – De-pollution – EU27
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
Faculty / Department: Faculty of Science > Geography and Environmental Science
Depositing User: Users 3 not found.
Date Deposited: 27 Jan 2014 14:01
Last Modified: 05 Mar 2014 15:25

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