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Longevity, Pollution and Growth

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  • Natacha Raffin

    ()
    (EconomiX - CNRS : UMR7166 - Université Paris X - Paris Ouest Nanterre La Défense)

  • Thomas Seegmuller

    ()
    (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))

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    Abstract

    We analyze the interplay between longevity, pollution and growth. We develop an OLG model where longevity, pollution and growth are endogenous. The authorities may provide two types of public services, public health and environmental maintenance, that participate to increase agents' life expectancy and to sustain growth in the long term. We show that global dynamics might be featured by a high growth rate equilibrium, associated with longer life expectancy and a environmental poverty trap. We examine changes in public policies: increasing public intervention on health or environmental maintenance display opposite effects on global dynamics, i.e. on the size of the trap and on the level of the stable balanced growth path. On the contrary, each type of public policy induces a negative leverage on the long run rate of growth.

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    Paper provided by HAL in its series Working Papers with number halshs-00793513.

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    Date of creation: Oct 2012
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    Handle: RePEc:hal:wpaper:halshs-00793513

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    Related research

    Keywords: Life expectancy; Pollution; Health; Growth;

    References

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    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.:
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    1. Tetsuo Ono, 2003. "Environmental Tax Policy and Long-Run Economic Growth," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 54(2), pages 203-217.
    2. Chakraborty, Shankha, 2004. "Endogenous lifetime and economic growth," Journal of Economic Theory, Elsevier, Elsevier, vol. 116(1), pages 119-137, May.
    3. Dimitrios Varvarigos, 2010. "Environmental Degradation, Longevity, and the Dynamics of Economic Development," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 46(1), pages 59-73, May.
    4. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(2), pages 353-77, May.
    5. Bovenberg, A.L. & Smulders, J.A., 1994. "Transitional impact of environmental policy in an endogenous growth model," Discussion Paper, Tilburg University, Center for Economic Research 1994-50, Tilburg University, Center for Economic Research.
    6. Neidell, Matthew J., 2004. "Air pollution, health, and socio-economic status: the effect of outdoor air quality on childhood asthma," Journal of Health Economics, Elsevier, Elsevier, vol. 23(6), pages 1209-1236, November.
    7. JOUVET, Pierre-André & PESTIEAU, Pierre & PONTHIERE, Grégory, . "Longevity and environmental quality in an OLG model," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -2377, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Balestra, Carlotta & DOTTORI, Davide, 2009. "Aging society, health and the environment," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2009037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    9. Dasgupta, Purnamita, 2004. "Valuing health damages from water pollution in urban Delhi, India: a health production function approach," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 9(01), pages 83-106, February.
    10. Kenneth Y. Chay & Michael Greenstone, 2003. "The Impact Of Air Pollution On Infant Mortality: Evidence From Geographic Variation In Pollution Shocks Induced By A Recession," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(3), pages 1121-1167, August.
    11. Matteo Cervellati & Uwe Sunde, 2005. "Human Capital Formation, Life Expectancy, and the Process of Development," American Economic Review, American Economic Association, American Economic Association, vol. 95(5), pages 1653-1672, December.
    12. Evans, Mary F. & Smith, V. Kerry, 2005. "Do new health conditions support mortality-air pollution effects?," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 496-518, November.
    13. Theodore Palivos & Dimitrios varvarigos, 2010. "Pollution Abatement as a Source of Stabilisation and Long-Run Growth," Discussion Paper Series 2010_13, Department of Economics, University of Macedonia, revised Sep 2010.
    14. Blackburn, Keith & Cipriani, Giam Pietro, 2002. "A model of longevity, fertility and growth," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 26(2), pages 187-204, February.
    15. George Economides & Apostolis Philippopoulos, 2008. "Growth enhancing policy is the means to sustain the environment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 207-219, January.
    16. Cervellati, Matteo & Sunde, Uwe, 2005. "Human capital formation, life expectancy, and the process of development," Munich Reprints in Economics, University of Munich, Department of Economics 20083, University of Munich, Department of Economics.
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