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Life expectancy and the environment

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We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental quality, depending on how much they expect to live, but also in order to leave good environmental conditions to future generations. In turn, environmental conditions affect life expectancy. The model produces multiple steady states (development regimes) and initial conditions do matter. In particular, some countries may be trapped in a low life expectancy / low environmental quality trap. This outcome is consistent with stylized facts relating life expectancy and environmental performance measures. Possible strategies to escape from this kind of trap are also discussed. Finally, this result is robust to the introduction of human capital through parental education expenditures.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2008/V08048.pdf
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Bibliographic Info

Paper 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 v08048.

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Length: 24 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:mse:cesdoc:v08048

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Keywords: Environmental quality; life expectancy; poverty traps.;

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  1. Life expectancy, quality of the environment, and mutliple equilibria
    by Economic Logician in Economic Logic on 2009-12-31 00:15:00
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