Abatement Technology and the Environment-Growth Nexus with Education
AbstractThis article challenges the conventional result that a tighter environmental tax has no long-run effect on human capital accumulation in the presence of pollution arising from final output production. It demonstrates that the technology used in the abatement sector determines the existence and the direction of the growth-effect. A tighter environmental tax rises (respectively reduces) human capital accumulation in the presence of pollution arising from final production, if the abatement sector is relatively more intensive in human (resp. physical) capital than final sector. That result always holds for finite lifetime but for infinite lifetime it only holds when labor supply is endogenous. The transitional impact of a tighter environmental policy is also investigated.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2011.25.
Date of creation: Feb 2011
Date of revision:
Growth; Environment; Overlapping Generations; Human Capital; Abatement;
Other versions of this item:
- Xavier Pautrel, 2011. "Abatement technology and the environment-growth nexus with education," Working Papers hal-00570312, HAL.
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-14 (All new papers)
- NEP-DGE-2011-05-14 (Dynamic General Equilibrium)
- NEP-ENV-2011-05-14 (Environmental Economics)
- NEP-FDG-2011-05-14 (Financial Development & Growth)
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