AbstractRecently, many contributions have focused on the relationship between capital accumulation, growth and population dynamics, introducing fertility choice in macro-dynamic models. In this paper, we go one step further highlighting also the link with pollution. We develop a simple overlapping generations model with paternalistic altruism according to wealth and environmental concerns. One can therefore explain a simultaneous increase of capital intensity, population growth and pollution, namely a polluting industrialization. We show in addition that a permanent productivity shock, possibly associated to technological innovations, promotes such a polluting development process, escaping a trap where the economy is relegated to a low capital intensity, population growth and pollution.
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Date of creation: 19 Oct 2011
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Growth; Population dynamics; Pollution; Altruism; Development;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-01 (All new papers)
- NEP-DEM-2011-11-01 (Demographic Economics)
- NEP-DGE-2011-11-01 (Dynamic General Equilibrium)
- NEP-ENV-2011-11-01 (Environmental Economics)
- NEP-RES-2011-11-01 (Resource Economics)
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