Artículo de revista
Beyond additive preferences: Economic behavior and the income pollution path
Fecha
2015Registro en:
Resource and Energy Economics 41 (2015) 91–102
DOI: 10.1016/j.reseneeco.2015.04.004
Autor
Figueroa Benavides, Eugenio
Pastén, Roberto
Institución
Resumen
Theoretical models of the environmental Kuznets curve (EKC) almost universally assume additive preferences; we demonstrate that under non-additive preferences the sufficient condition to sign the economy's income-pollution path depends on the elasticity of substitution between consumption and environment (and not on the elasticity of marginal utility of consumption). The proposed model provides behavioral content that has been missed in the existing literature. In the model, and also departing from the previous literature, preferences change and evolve (through a variable elasticity of substitution) according to the relative scarcity of the environment.