John, A.Pecchenino, R.2016-04-192016-04-191994The Economic Journal 104(427): 1393-1410.0013-0133http://hdl.handle.net/10919/65824Metadata only recordThis article analyses the potential conflict between economic growth and the maintenance of environmental quality in an overlapping generations model. Short-lived individuals make decisions which have long-lasting effects on both factor productivity and the environment. The model provides a theoretical explanation of observed correlations between environmental quality and income, whereby economic growth is associated first with declines, then improvements, in environmental quality. It suggests circumstances in which multiple Pareto-ranked steady-state equilibria may arise, and in which sustained growth of both capital and environmental quality may occur. Over-maintenance of the environment, analogous to dynamically inefficient over accumulation of capital, may emerge.text/plainen-USIn CopyrightEnvironmental servicesEconomic policyEconomic growthEnvironmental impactsEconomic growthEnvironmental qualityIncomeGovernanceAbstractCopyright 1994 Royal Economic Society