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On the economic growth and environmental trade-off: a multi-objective analysis.

Authors :
Marsiglio, Simone
Privileggi, Fabio
Source :
Annals of Operations Research; Jan2021, Vol. 296 Issue 1/2, p263-289, 27p
Publication Year :
2021

Abstract

We develop a multicriteria approach, based on both scalarization and goal programming techniques, in order to analyze the trade off between economic growth and environmental outcomes in a framework in which the economy and environment relation is bidirectional. On the one hand, economic growth by stimulating production activities gives rise to emissions of pollutants which deteriorate the environment. On the other hand, the environment affects economic activities since pollution generates a production externality determining how much output the economy can produce and reducing welfare. In this setting we show that optimality dictates an initial overshooting followed by economic degrowth and rising pollution. This implies that independently of the relative importance of economic and environmental factors, it is paradoxically optimal for the economy to asymptotically reach the maximum pollution level that the environment is able to bear. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
02545330
Volume :
296
Issue :
1/2
Database :
Complementary Index
Journal :
Annals of Operations Research
Publication Type :
Academic Journal
Accession number :
147928472
Full Text :
https://doi.org/10.1007/s10479-019-03217-y