ABSTRACT

Increasing attention is being paid to the economic consequences of environmental degradation, in terms of both its impact on human health and productivity, and the estimated large abatement costs that will be required to mitigate global environmental problems. However, rather less attention is being given to some of the perverse effects that environmental degradation may generate on economic growth and the well-being of individuals, through the conditioning of their consumption choices. In particular, as some studies point out (Hueting 1980; Antoci and Bartolini 1999, 2004; Bartolini and Bonatti 2002, 2003; Lopez 2003; Antoci et al. 2008), environmental depletion may be modifying prevailing consumption patterns, leading individuals to substitute free environmental goods with costly private goods that allow the agents to protect themselves against environmental degradation.1