Do wealth levels affect the contribution to negative externalities?

Date

2020

Director

Publisher

Elsevier
Acceso abierto / Sarbide irekia
Artículo / Artikulua
Versión aceptada / Onetsi den bertsioa

Project identifier

Impacto
OpenAlexGoogle Scholar
No disponible en Scopus

Abstract

This paper experimentally explores the link between poverty and decisions that lead environmental degradation. In the experiment, individuals with different wealth levels play a game that describes environmental degradation as a contribution to an activity that generates a negative externality. The experimental data show that wealth levels not related to the environment (exogenous poverty) play no significant role in environmental decisions. However, the variation in wealth as a consequence of the contribution to environmental degradation (endogenous poverty) affects the behavior of individuals, that enter a spiral of poverty and environmental degradation. These results suggest the existence of a poverty-environment trap.

Description

Keywords

Environmental degradation, Exogenous poverty, Endogenous poverty, Negative externality, Experiment

Department

Ekonomia / Institute for Advanced Research in Business and Economics - INARBE / Economía

Faculty/School

Degree

Doctorate program

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© 2020 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0

Licencia

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