3540566

2821

We analyze growth dynamics in an economy where the well-being of economic agents depends on three goods: leisure, a free access environmental good and a private good that can be consumed as a substitute for the environmental resource. The processes of production and consumption of the private good by each agent impose negative externalities on other agents through the depletion of the environmental good. aper shows that, in such context, the existence of private substitutes for environmental goods may fuel an undesirable economic growth process. This process is driven by the continuous increase in agentsʹ needs for private consumption generated by the progressive reduction in free consumption of the environmental good.

1385

Substitutes for environmental goods , Environmental defensive expenditures , Undesirable economic growth , Negative externalities

Studia Iranica

1397

1397