Essay On Economic Growth and Environmental Quality

Abstract

The major premise of this essay is that production-consumption and waste emis-sions tend to be joint products of the human species. Given this premise, a parable of an astronaut irretrievably lost in space is discussed in order to deduce several propositions on the astronaut's optimal rate of consumption. A Harrod type of model is also analyzed with regard to the rate of consumption over time where the model includes a simplified depiction of the interaction between the economy and natural environment. Empirical estimates of the impact of effluent charges on comparative international advantage of selected countries are also presented. The major conclusion is that national and international economic policies and national environmental policies are not separable.