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Reconsidering The Impact of Environment on Long-Run Growth When Pollution Influences Health and Agents Have Finite-Lifetime

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Author Info
Xavier Pautrel (Université de Nantes)

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Abstract

Using an overlapping generation model à la Blanchard (1985) with human capital accumulation, this article demonstrates that the influence of environment on optimal growth in the long-run may be explained by the detrimental effect of pollution on life expectancy. It also shows that, in such a case, greener preferences are growth- and welfare-improving even if the ability of the agents to learn is independent to pollution and utility is additively separable. Finally, it establishes that it is possible to implement a win-win environmental policy.

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Publisher Info
Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.93.

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Date of creation: Jun 2006
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Handle: RePEc:fem:femwpa:2006.93

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Related research
Keywords: Growth; Environment; Overlapping Generations; Human Capital; Health;

Find related papers by JEL classification:
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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This page was last updated on 2009-12-3.

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