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Economic growth, liberalization and the environment.

  • Ecology
  • Economics
  • Geography


This is a postprint of: Economic growth, liberalization and the environment J.A. Smulders In: Encyclopedia of Energy Economics, Elsevier, 2004 For citation: Please use the reference above Link to the postprint file: More information about this publication: 1 Forthcoming in: Cutler Cleveland (ed) “Encyclopedia of Energy”, Volume 2, 53-64, Elsevier 2004 Economic growth, liberalization, and the environment Sjak Smulders Tilburg University Glossary Definition I. Interactions between the economy and the environment A. Economic growth and resource use B. Externalities. markets and incentives II. Trends in economic growth and resource use A. Trends in economic growth B. Trends in energy and materials C. Cross country differences in resource intensities III. Explaining the link between growth and resource use A. The environment-income relationship B. The role of environmental regulation IV. International trade and the environment A. The pollution haven hypothesis B. Is trade beneficial? C. Is trade good for the environment 2 V. Environmental regulation and productivity A. The cost of environmental regulation B. General equilibrium effects C. In search of “Double Dividends” D. Confronting costs and benefits 3 GLOSSARY Comparative advantage. A country has a comparative advantage in a particular good if the ratio of costs to produce this good, relative to the cost to produce another good, is lower than the same cost ratio in other countries. Comparative advantage is the basis for trade: countries gain if they export the good they produce relatively most efficient. Economic growth. Steady increases in GDP. Energy intensity. Energy supply divided by GDP. Externality. A situation in which market transactions affect persons who are not involved in the

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