Labor force growth and the environment in Costa Rica

This study examines the economy-wide impacts of labor force growth on the environment in Costa Rica under various assumptions about the amount of physical and human capital with which additional workers are endowed. A computable general equilibrium (CGE) model is constructed which includes 10 environmental indicators. Results indicate that the economy-wide impacts of labor force growth are significant, especially Rybczynski-type impacts on the economy's production possibilities frontier. These impacts vary significantly according to the amounts of physical and human capital with which additional workers are endowed. (C) 1998 Elsevier Science B.V. All rights reserved. JEL classifications: O10, O54, Q20.