Cancelled Past event

Pollution, Corruption and Economic Development STACEES Research Seminar - Dr Erven Lauw (School of Economics & Finance, University of St Andrews)

Dr Erven Lauw investigates the effects of bureaucratic corruption on the economy when the relationship between pollution and development is represented by an Environmental Kuznets Curve. The analysis is based on a dynamic general equilibrium model in which capital accumulation is the engine of growth. The government appoints bureaucrats to administer environmental policy. Corruption may arise due to the opportunity for bureaucrats to embezzle public funds.

In the model, corruption affects pollution directly by reducing resources for pollution abatement and indirectly through its negative impact on development. The main results can be summarised as follows: (1) The total effect of corruption on pollution depends on the economy's level of development; (2) corruption and development are jointly determined allowing the possibility of a poverty trap; (3) a policy to reduce corruption may be beneficial for the environment in less corrupt nations, but not necessarily in countries with a high incidence of corruption.

Dr Lauw is an Associate Lecturer at the School of Economics & Finance of the University of St Andrews. Previously, she obtained her postgraduate degrees from the same university. Her PhD in Economics was funded jointly by the Scottish Institute for Research in Economics and the University of St Andrews. Her MSc in International Strategy and Economics, which she completed with a Distinction winning the Dr John B Henderson Postgraduate Prize, was funded by a Chevening Scholarship. Her research interests include the intersection between economic development and various socio-political and development issues such as inequality, corruption, environment, sustainability, governance, and politics.

Please note that this is a hybrid event.

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