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Endogenous longevity and the joint dynamics of pollution and capital accumulation

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  • Varvarigos, Dimitrios

Abstract

The current paper offers a new explanation of the emergence of multiple equilibria, for which the high (low) income equilibrium is associated with high (low) environmental quality. This new explanation rests on endogenous technological choice in the presence of emission taxes – an idea whose foundations find strong support from existing empirical evidence. Thus, the interactions between environmental policy and technology choice, within a framework that accounts for the health effects of pollution, may suggest a possible mechanism behind some of the observed differences in income, life expectancy and environmental quality among countries.

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  • Varvarigos, Dimitrios, 2014. "Endogenous longevity and the joint dynamics of pollution and capital accumulation," Environment and Development Economics, Cambridge University Press, vol. 19(4), pages 393-416, August.
    • Handle: RePEc:cup:endeec:v:19:y:2014:i:04:p:393-416_00
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    Cited by:

    1. Pietro F. Peretto & Simone Valente, 2021. "Growth with Deadly Spillovers," University of East Anglia School of Economics Working Paper Series 2021-05, School of Economics, University of East Anglia, Norwich, UK..
    2. Dugan, Anna & Prskawetz, Alexia & Raffin, Natacha, 2022. "The Environment, Life Expectancy and Growth in Overlapping Generations Models: A Survey," ECON WPS - Working Papers in Economic Theory and Policy 01/2022, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    3. Dioikitopoulos, Evangelos V. & Ghosh, Sugata & Karydas, Christos & Vella, Eugenia, 2020. "Roads to prosperity without environmental poverty: The role of impatience," Economics Letters, Elsevier, vol. 186(C).
    4. Sichao Wei & David Aadland, 2021. "Pollution permits, green taxes, and the environmental poverty trap," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1032-1052, May.
    5. Dao, Nguyen Thang & Edenhofer, Ottmar, 2018. "On the fiscal strategies of escaping poverty-environment traps towards sustainable growth," Journal of Macroeconomics, Elsevier, vol. 55(C), pages 253-273.
    6. Goenka, Aditya & Jafarey, Saqib & Pouliot, William, 2020. "Pollution, mortality and time consistent abatement taxes," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 1-15.
    7. Evangelos V. Dioikitopoulos & Sugata Ghosh & Eugenia Vella, 2016. "Technological Progress, Time Perception and Environmental Sustainability," Working Papers 2016002, The University of Sheffield, Department of Economics.

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