Education and the Political Economy of Environmental Protection
AbstractWe develop a political economy model that might explain the different environmental performance of countries, through educational choices. Individuals decide whether to invest in additional education according to their expectations regarding future environmental quality. They also vote on a tax that will be exclusively used to finance environmental protection. We show that the model may generate multiple equilibria and agents' expectations may be self-fulfilling when the public policy is endogenous. Then, we analyse the long-term implications of a public policy that would favour education and make it possible to select the higher equilibrium.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 10042.
Length: 34 pages
Date of creation: May 2010
Date of revision:
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Environmental quality; human capital; education; self-fulfilling prophecies; public policy.;
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Find related papers by JEL classification:
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- 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-2010-06-18 (All new papers)
- NEP-DGE-2010-06-18 (Dynamic General Equilibrium)
- NEP-EDU-2010-06-18 (Education)
- NEP-ENV-2010-06-18 (Environmental Economics)
- NEP-HRM-2010-06-18 (Human Capital & Human Resource Management)
- NEP-LAB-2010-06-18 (Labour Economics)
- NEP-POL-2010-06-18 (Positive Political Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Multiple equilibria in environmental policy
by Economic Logician in Economic Logic on 2010-07-02 14:21:00
- Emeline Bezin, 2013. "The dynamics of environmental concern and the evolution of pollution," Working Papers SMART - LERECO 13-09, INRA UMR SMART.
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