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Longevity, pollution and growth

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  • Natacha Raffin

    ()
    (University Paris Ouest Nanterre la Défense, EconomiX and Climate Economics Chair.)

  • Thomas Seegmuller

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS.)

Abstract

We analyze the interplay between longevity, pollution and growth. We develop an OLG model where longevity, pollution and growth are endogenous. The authorities may provide two types of public services, public health and environmental maintenance, that participate to increase agents’ life expectancy and to sustain growth in the long term. We show that global dynamics might be featured by a high growth rate equilibrium, associated with longer life expectancy and a environmental poverty trap. We examine changes in public policies: increasing public intervention on health or environmental maintenance display opposite effects on global dynamics, i.e. on the size of the trap and on the level of the stable balanced growth path. On the contrary, each type of public policy induces a negative leverage on the long run rate of growth.

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Bibliographic Info

Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1230.

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Length: 23 pages
Date of creation: 30 Oct 2012
Date of revision:
Handle: RePEc:aim:wpaimx:1230

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Web page: http://www.amse-aixmarseille.fr/en
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Keywords: Life expectancy; Pollution; Health; Growth.;

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  1. Dasgupta, Purnamita, 2004. "Valuing health damages from water pollution in urban Delhi, India: a health production function approach," Environment and Development Economics, Cambridge University Press, vol. 9(01), pages 83-106, February.
  2. Theodore Palivos & Dimitrios varvarigos, 2010. "Pollution Abatement as a Source of Stabilisation and Long-Run Growth," Discussion Paper Series 2010_13, Department of Economics, University of Macedonia, revised Sep 2010.
  3. Bovenberg, A.L. & Smulders, J.A., 1994. "Transitional impact of environmental policy in an endogenous growth model," Discussion Paper 1994-50, Tilburg University, Center for Economic Research.
  4. Shankha Chakraborty, 2002. "Endogenous Lifetime and Economic Growth," University of Oregon Economics Department Working Papers 2002-03, University of Oregon Economics Department, revised 26 Jan 2002.
  5. Cervellati, Matteo & Sunde, Uwe, 2005. "Human capital formation, life expectancy, and the process of development," Munich Reprints in Economics 20083, University of Munich, Department of Economics.
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  7. JOUVET, Pierre-André & PESTIEAU, Pierre & PONTHIERE, Gregory, 2007. "Longevity and environmental quality in an OLG model," CORE Discussion Papers 2007069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Carlotta Balestra & Davide Dottori, 2012. "Aging society, health and the environment," Journal of Population Economics, Springer, vol. 25(3), pages 1045-1076, July.
  9. Dimitrios Varvarigos, 2010. "Environmental Degradation, Longevity, and the Dynamics of Economic Development," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 46(1), pages 59-73, May.
  10. George Economides & Apostolis Philippopoulos, 2008. "Growth enhancing policy is the means to sustain the environment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 207-219, January.
  11. Matteo Cervellati & Uwe Sunde, 2005. "Human Capital Formation, Life Expectancy, and the Process of Development," American Economic Review, American Economic Association, vol. 95(5), pages 1653-1672, December.
  12. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
  13. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact Of Air Pollution On Infant Mortality: Evidence From Geographic Variation In Pollution Shocks Induced By A Recession," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 1121-1167, August.
  14. Blackburn, Keith & Cipriani, Giam Pietro, 2002. "A model of longevity, fertility and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(2), pages 187-204, February.
  15. Neidell, Matthew J., 2004. "Air pollution, health, and socio-economic status: the effect of outdoor air quality on childhood asthma," Journal of Health Economics, Elsevier, vol. 23(6), pages 1209-1236, November.
  16. Evans, Mary F. & Smith, V. Kerry, 2005. "Do new health conditions support mortality-air pollution effects?," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 496-518, November.
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Cited by:
  1. Nguyen Than Dao & Ottmar Edenhofer, 2014. "On the Fiscal Strategies of Escaping Poverty-Environment Traps (and) Towards Sustainable Growth," CESifo Working Paper Series 4865, CESifo Group Munich.
  2. Natacha Raffin & Thomas Seegmuller, 2014. "The Cost of Pollution on Longevity, Welfare and Economic Stability," AMSE Working Papers 1433, Aix-Marseille School of Economics, Marseille, France, revised 16 Jul 2014.

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