This note shows that the assumptions about the abatement technology modify the impact of the environmental taxation on the long-run growth driven by human capital accumulation à la Lucas (1988), when lifetime is finite. Whereas no impact of the environmental policy on long-run growth is found when pollution originates from final output and abatement is an activity requiring final output to reduce net emissions, this note demonstrates that a tighter environmental tax enhances human capital accumulation when it is assumed that abatement services are produced with physical capital.
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Paper provided by HAL in its series Working Papers with number
hal-00425537_v1.
Length: Date of creation: 2009 Date of revision: Handle: RePEc:hal:wpaper:hal-00425537_v1
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