<tideeAbstracts><tideeAbs><RefNo>1135</RefNo><PublishYear>2003</PublishYear><Contributors>Bartolini S and Bonatti L</Contributors><Affiliation>Dipartimento di Economia Politica, Universita di Siena</Affiliation><Source><italic>Environment and Development Economics</italic><bold>8</bold>(1): 11–30</Source><Title>Undesirable growth in a model with capital accumulation and environmental assets

TERI

TERI Information Digest on Energy and Environment

0972-6721

The Energy and Resources Institute

tidee-2-1-036

ABSTRACTS OF DISSERTATIONS OR ARTICLES

Biodiversity and natural resources

32003

21102102

<tideeAbstracts><tideeAbs><RefNo>1135</RefNo><PublishYear>2003</PublishYear><Contributors>Bartolini S and Bonatti L</Contributors><Affiliation>Dipartimento di Economia Politica, Universita di Siena</Affiliation><Source><italic>Environment and Development Economics</italic><bold>8</bold>(1): 11–30</Source><Title>Undesirable growth in a model with capital accumulation and environmental assetsThe expansion of private production erodes the quality of commonly owned assets, thereby forcing individuals to rely increasingly on private goods to satisfy their needs. In the face of this deterioration, households increase their work effort and accumulate more capital in order to buy more consumer goods both in the present and future. By so doing, each household contributes to an increase in production and thus has a detrimental - though negligible - impact on commonly owned assets. Hence, the economy converges to a long-run equilibrium level of production that is higher than the level associated with the Pareto-efficient path. The authors present a neo-classical growth model in which both the time devoted to market activities and the accumulation of productive assets are increased by the de-accumulation of environmental assets. (23 references)