Voluntary Contributions with Uncertainty: the Environmental Quality
AbstractThis paper presents an overlapping generations model of environmental externalities with a depollution technology. each agent concerned by the environmental degradation can volutary contribute in order to reduce it. Contributing to the environmental quality means financing depollution activities and uncertainty concerns its efficiency since it's not always clear or certain what effects will result from a reduction of pollution. We show that if an agent is sufficiently risk averse, voluntary contribution is a decreasing function of average efficiency of depollution technology. If on the contrary, the sustitution effect is weaker than the pollution effect, the opposite holds. We show that precaution about environmental quality has two possible consequencies with depend on agent risk aversion. Therefore, understanding the implication of precautionnary attitude, leads us to the consideration of the agent's risk aversion characterization and studying the effect of an increase in risk aversion implies a knowledge on prudent attitude. so, we have to conclude that precaution and risk aversion are two complementary and indissociable concepts.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 97a30.
Length: 14 pages
Date of creation: 1995
Date of revision:
Contact details of provider:
Postal: G.R.E.Q.A.M., (GROUPE DE RECHERCHE EN ECONOMIE QUANTITATIVE D'AIX MARSEILLE), CENTRE DE VIEILLE CHARITE, 2 RUE DE LA CHARITE, 13002 MARSEILLE.
Web page: http://www.greqam.fr/
More information through EDIRC
EXTERNALITIES ; INFORMATION ; PUBLIC GOODS ; RENEWABLE RESOURCES;
Other versions of this item:
- Pierre-Andr� Jouvet, 1998. "Voluntary Contributions with Uncertainty: The Environmental Quality," The Geneva Risk and Insurance Review, Palgrave Macmillan, vol. 23(2), pages 151-165, December.
- JOUVET, Pierre-André, 1998. "Voluntary contributions with uncertainty: the environmental quality," CORE Discussion Papers 1998020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- Q29 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Other
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.:
- Gollier, C. & Jullien, B. & Treich, N., 1997. "Learning and Irreversibility: An Econmic Interpretation of the "Precautionnary Principle"," Papers 97.470, Toulouse - GREMAQ.
- Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
- Martin Feldstein, 1988.
"The Effects of Fiscal Policies When Incomes are Uncertain: A Contradiction to Ricardian Equivalence,"
NBER Working Papers
2062, National Bureau of Economic Research, Inc.
- Feldstein, Martin, 1988. "The Effects of Fiscal Policies when Incomes Are Uncertain: A Contradiction to Ricardian Equivalence," American Economic Review, American Economic Association, vol. 78(1), pages 14-23, March.
- Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
- Jouvet, P-A. & Michel, P. & Pestieau, P., 1996.
"Altruism, Voluntary Contributions and Neutrality. The Case of Environmental Quality,"
96a32, Universite Aix-Marseille III.
- Jouvet, Pierre-Andre & Michel, Philippe & Pestieau, Pierre, 2000. "Altruism, Voluntary Contributions and Neutrality: The Case of Environmental Quality," Economica, London School of Economics and Political Science, vol. 67(268), pages 465-75, November.
- JOUVET, Pierre-André & MICHEL, Philippe & PESTIEAU, Pierre, . "Altruism, voluntary contributions and neutrality: the case of environmental quality," CORE Discussion Papers RP -1484, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- JOUVET, Pierre André & MICHEL, Philippe & PESTIEAU, Pierre, 1996. "Altruism, voluntary contributions and neutrality. The case of environmental quality," CORE Discussion Papers 1996067, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Chichilnisky, G. & Heal, G., 1993.
"Global Environmental Risks,"
1993_03, Columbia University, Department of Economics.
- 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.
- Kihlstrom, Richard E. & Mirman, Leonard J., 1974. "Risk aversion with many commodities," Journal of Economic Theory, Elsevier, vol. 8(3), pages 361-388, July.
- B. Douglas Bernheim & Kyle Bagwell, 1989.
"Is Everything Neutral?,"
NBER Working Papers
2086, National Bureau of Economic Research, Inc.
- Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
- Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-49.
- Kimball, Miles S. & Mankiw, N. Gregory, 1989.
"Precautionary Saving and the Timing of Taxes,"
3443105, Harvard University Department of Economics.
- Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
- Johana Etner & Meglena Jeleva, 2004.
"Pessimism or optimism : a justification to voluntary contributions toward environmental quality,"
Cahiers de la Maison des Sciences Economiques
v04099, Université Panthéon-Sorbonne (Paris 1).
- Johanna Etner & Meglena Jeleva & Pierre-Andre Jouvet, 2009. "Pessimism Or Optimism: A Justification To Voluntary Contributions Toward Environmental Quality ," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 308-319, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.