Endogenous Population and Environmental Quality

Abstract

This paper provides with empirical and theoretical studies of the relationship between population, economic growth and environmental quality. Using a simple endogenous growth model we obtain results close to empirical findings. We show existence of a sustainable balanced growth path (BGP) equilibrium in which perpetual economic growth goes in parallel with environmental quality preservation. At the BGP equilibrium, when all exogenous factors are controlled, a negative relationship between fertility rate and economic growth (termed neo-Malthusian relationship) and a negative relationship between population growth rate and environmental quality emerge.Environmental quality; Endogenous population; Endogenous growth; Deforestation