The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Economic Development and the Environment

  • Ian Coxhead
Reference work entry


Economic development in low-income economies is initially highly resource-intensive. Resource depletion and pollution damage is often estimated to reduce ‘real’ GDP growth by between one and two per cent per year. Growth and structural change alter the environment–development nexus in nonlinear fashion. Policy reforms, global market integration, and institutional development all alter the propensity for growth to generate environmental damage. The emergence of new trade patterns among developing countries has created new challenges in the measurement and analysis of development–environment interactions. Larger developing economies are now emerging as major sources of emissions that contribute to global climate change.


Biodiversity Comparative advantage Conservation Economic development and the environment Environmental economics Environmental Kuznets curve Greenhouse gas emissions Growth and international trade Heckscher–Ohlin trade theory Import substitution Income effects Natural resources Non-use amenities North–South economic relations Pollution Pollution haven hypothesis Poverty alleviation Ricardian trade theory Social norms Structural change Sustainable development 

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Ian Coxhead
    • 1
  1. 1.