Levy, Amono; Berck, Peter; and Chowdhury, Khorshed, An analysis of the world’s environment and population with varying carrying capacity and concerns, Department of Economics, University of Wollongong, Working Paper 09-16, 2009, 23p.
Due to the open-access nature of the environment we consider an ad hoc adjustment of people’s footprints. People’s environmental concerns are intensified (diminished) as the quality of the environment falls below (rises above) a threshold. Changes in the quality of the environment affect Earth’s carrying capacity. We claim that without technological, social and international progress the interplay between the nonoptimally changing environmental concerns and carrying capacity embarks the world’s environment and human population on a clockwise oscillating course that leads to a unique interior steady state with population similar to the current one residing in a slightly more degraded environment. (JEL O13, Q20)