Habit in Pollution. A Challenge for Intergenerational Equity
AbstractIn this article we extend the recent literature on overlapping generations and pollution by allowing each generation’s utility to depend on past levels of pollution. To conform with the literature on habit in consumption we call this extension habit in pollution. Habit in pollution can visualize itself as either a concern for the flow of pollution only, or for the stock, or anything in between. We show that habit in pollution has not only significant consequences for the level of pollution and capital, but also for the evolution of utility over time. We observe that habit in pollution can lead to violations of two standard criteria of sustainability, which suggests that habit in pollution can be another source of intergenerational inequity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006004.
Date of creation: 01 Dec 2006
Date of revision:
Other versions of this item:
- SCHUMACHER, Ingmar & ZOU, Benteng, 2006. "Habit in pollution. A challenge for intergenerational equity," CORE Discussion Papers 2006006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-03-25 (All new papers)
- NEP-ENV-2006-03-25 (Environmental Economics)
- NEP-RES-2006-03-25 (Resource Economics)
- NEP-UPT-2006-03-25 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Scitovsky, Tibor, 1992. "The Joyless Economy: The Psychology of Human Satisfaction," OUP Catalogue, Oxford University Press, number 9780195073478.
- Seegmuller, Thomas & Verchere, Alban, 2004.
"Pollution as a source of endogenous fluctuations and periodic welfare inequality in OLG economies,"
Elsevier, vol. 84(3), pages 363-369, September.
- Thomas Seegmuller & Alban Verchere, 2002. "Pollution as a source of endogenous fluctuations and periodic welfare inequality in OLG economies," Working Papers of BETA 2002-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- repec:ebl:ecbull:v:4:y:2002:i:7:p:1-10 is not listed on IDEAS
- John C. V. Pezzey, 1997. "Sustainability Constraints versus "Optimality" versus Intertemporal Concern, and Axioms versus Data," Land Economics, University of Wisconsin Press, vol. 73(4), pages 448-466.
- Ronald Wendner, 2002. "Capital Accumulation and Habit Formation," Economics Bulletin, AccessEcon, vol. 4(7), pages 1-10.
- de la Croix, David, 1996.
"The Dynamics of Bequeathed Tastes,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
1996004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Richard B. Howarth, 1997. "Sustainability as Opportunity," Land Economics, University of Wisconsin Press, vol. 73(4), pages 569-579.
- John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
- R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
- Lind, Robert C, 1995. "Intergenerational equity, discounting, and the role of cost-benefit analysis in evaluating global climate policy," Energy Policy, Elsevier, vol. 23(4-5), pages 379-389.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne DAVISTER-LOGIST).
If references are entirely missing, you can add them using this form.