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Intergenerational altruism and the environment

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  • JOUVET, Pierre-André

    (GREMARS, University of Lille III)

  • MICHEL, Philippe

    (GREQAM, University of Aix-Marseille II)

  • VIDAL, Jean-Pierre

    (Department of Applied Economics, University of Cambridge and CEME, University of Paris I)

Abstract

This paper constructs an overlapping generations model of pollution externality wherein individ- uals are altruistically linked to their offspring as in Barro (1974). It is shown that steady-state consumption can be a decreasing function of the intergenerational degree of altruism. Despite individuals’ altruism, the competitive equilibrium is not optimal. We thus study the social optimum and prove that it can be decentralised.

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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 1997041.

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Date of creation: 01 Jun 1997
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Handle: RePEc:cor:louvco:1997041

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Keywords: altruism; environment; overlapping generations;

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