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Altruism, voluntary contributions and neutrality. The case of environmental quality

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  • JOUVET, Pierre André
  • MICHEL, Philippe
  • PESTIEAU, Pierre

Abstract

This paper develops an intertemporal model wherein production generates pollution, which is viewed by consumers as a public bad. There are two types of consumer: those who are altruistic and leave bequests to their children, and those who are pure life-cyclers. Both types voluntarily contribute to the quality of environment through environmental groups. It appears that, if bequests by altruists and voluntary contributions by all are positive, redistribution is neutral--which does not mean that pollution abatement and capital accumulation are optimal. To achieve optimality, one needs a tax on inheritance and a differential subsidy on all consumer contributions.

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File URL: http://alfresco.uclouvain.be/alfresco/download/attach/workspace/SpacesStore/11bca774-7444-4653-b9f0-80cdd12e3a3c/coredp_1996_67.pdf
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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1996067.

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Date of creation: 01 Dec 1996
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Handle: RePEc:cor:louvco:1996067

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Cited by:
  1. Johanna Etner & Meglena Jeleva & Pierre-André Jouvet, 2004. "Risk Perceptions, Voluntary Contributions and Environmental Policy," Cahiers de la Maison des Sciences Economiques v04097, Université Panthéon-Sorbonne (Paris 1).
  2. Pierre-André Jouvet & Philippe Michel & Pierre Pestieau, 2007. "Public and private environmental spending. A political economy approach," EconomiX Working Papers 2007-31, University of Paris West - Nanterre la Défense, EconomiX.
  3. Mouez Fodha, 2009. "Protection mixte de l'environnement et externalités intergénérationnelles," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 843-852.
  4. Eric Bettinger & Robert Slonim, 2005. "Using Experimental Economics to Measure the Effects of a Natural Educational Experiment on Altruism," NBER Working Papers 11725, National Bureau of Economic Research, Inc.
  5. Jouvet, P.-A., 1995. "Voluntary Contributions with Uncertainty: the Environmental Quality," G.R.E.Q.A.M. 97a30, Universite Aix-Marseille III.
  6. Tetsuo Ono, 2009. "The political economy of environmental and social security policies: the role of environmental lobbying," Economics of Governance, Springer, vol. 10(3), pages 261-296, July.
  7. Tetsuo Ono, 2007. "Environmental Tax Reform, Economic Growth, and Unemployment in an OLG Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(1), pages 133-161, March.
  8. Emeline Bezin, 2013. "The dynamics of environmental concern and the evolution of pollution," Working Papers SMART - LERECO 13-09, INRA UMR SMART.

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