Economic growth and the environment

This paper provides a review of the literature on economic growth and the e nvironment and suggests ways in which it can inform the traditional concern s of development economics. It contrasts the views of "optimists" and "pess imists" on the feasibility of continued economic growth. Optimists believe that increased scarcity of environmental goods will induce adequate conserv ation responses, including technological innovation, while pessimists belie ve that these responses will be insufficient without measures to limit the scale of the global economy. The paper looks at the causes of environmental degradation; eh:amines the policy approaches implicit in both camps; and s uggests an approach that draws on elements from both.