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Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Productivity Growth, Decoupling and Pollution Leakage
Author(s): Turner, Karen
Hanley, Nicholas
Cui, Cathy Xin
Ha, Soo Jung
McGregor, Peter G
Yin, Ya Ping
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Citation: Turner K, Hanley N, Cui CX, Ha SJ, McGregor PG & Yin YP (2011) Productivity Growth, Decoupling and Pollution Leakage. Stirling Economics Discussion Paper, 2011-13. University of Stirling Management School.
Keywords: labour productivity
factor mobility
economic growth
pollution leakage
carbon footprints
JEL Code(s): D57
Issue Date: Jul-2011
Publisher: University of Stirling Management School
Series/Report no.: Stirling Economics Discussion Paper, 2011-13
Abstract: This paper examines the issue of decoupling economic growth and pollution through growth driven by productivity improvements; and the extent to which pollution effects spill over national borders. Focus is widened from conventional production measures of pollution to a consumption accounting principle (carbon footprints). This adds a useful dimension to understanding pollution leakage effects. Using an interregional empirical general equilibrium framework, we consider the impacts of productivity growth in one region in that region and a neighbour linked through trade in goods and services and in the factor of production that is targeted with the productivity improvement (here through interregional migration of labour). The key finding is that while economic growth resulting from the productivity improvement in one region is accompanied by increased absolute pollution levels across both regions, positive competitiveness effects lead to a reduction in imports and pollution embodied therein to both regions from the rest of the world.
Type: Working or Discussion Paper
Affiliation: Economics
University of Strathclyde
Korean Research Institute for Human Settlements
University of Strathclyde
University of Hertfordshire

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