Endogenous growth and environmental policy: are the processes of growth and tertiarization in developed economies reversible?

The starting point for this article is the idea put forward by Gadrey ( 2008 , 2010 ) that environmental problems and a policy of addressing them by introducing an environmental tax could trigger economic contraction and downscaling and a shrinking of the service sector in developed economies. The p...

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Veröffentlicht in:Journal of evolutionary economics 2013-09, Vol.23 (4), p.831-860
Hauptverfasser: Desmarchelier, Benoît, Gallouj, Faïz
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container_title Journal of evolutionary economics
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Gallouj, Faïz
description The starting point for this article is the idea put forward by Gadrey ( 2008 , 2010 ) that environmental problems and a policy of addressing them by introducing an environmental tax could trigger economic contraction and downscaling and a shrinking of the service sector in developed economies. The purpose of this article is to test these hypotheses using an evolutionary simulation model. To this end, we use a model of endogenous growth and structural change into which an environmental dimension is incorporated. The results of our simulations certainly reveal structural change within service industries but no change in the distribution of employment between services and manufacturing. Furthermore, we show that the environmentally desirable stagnation of labor productivity in the capital goods sector is compatible with a largely positive growth trend in the economy as a whole, with the development of knowledge-intensive business services apparently able partially to offset the stagnation of productivity in the capital goods sector. We conclude by emphasizing the need for environmental innovation in service activities and cast doubt on the long-term effectiveness of an environmental tax in the fight against pollution.
doi_str_mv 10.1007/s00191-012-0292-2
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source SpringerLink Journals; EBSCOhost Business Source Complete
subjects Business administration
Deindustrialization
Developing countries
Economic Growth
Economic models
Economic statistics
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Employment
Endogenous growth
Entrepreneurship
Environment
Environmental impact
Environmental policy
Environmental tax
Externality
Growth models
Humanities and Social Sciences
Hypotheses
Institutional/Evolutionary Economics
LDCs
Manufacturing
Microeconomics
Natural resources
Productivity
R & D/Technology Policy
Regular Article
Stagnation
Structural change
Studies
Sustainable development
Utilities
title Endogenous growth and environmental policy: are the processes of growth and tertiarization in developed economies reversible?
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