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.