Environmental Regulation and Economic Growth under Education Externalities

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Environmental Regulation and Economic Growth under Education Externalities

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Paul Makdissi () (Département d'économique, Université de Sherbrooke)
Quentin Wodon () (AFTPM, World Bank)

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Abstract

Using an extension of Lucas' model of endogenous growth with education externality, we show that an environmental tax may increase growth. This is because the tax makes physical capital accumulation less attractive, thereby correcting for the underinvestment by agents in human capital.

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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 02-12.

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Length: 13 pages
Date of creation: 2002
Date of revision: 2004
Handle: RePEc:shr:wpaper:02-12

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Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-08-13 (All new papers)
NEP-EDU-2005-08-13 (Education)
NEP-ENV-2005-08-13 (Environmental Economics)
NEP-REG-2005-08-13 (Regulation)

References listed on IDEAS
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.:

Oueslati, Walid, 2002. "Environmental policy in an endogenous growth model with human capital and endogenous labor supply," Economic Modelling, Elsevier, vol. 19(3), pages 487-507, May. [Downloadable!] (restricted)
Raymond Gradus & Sjak Smulders, 1993. "The trade-off between environmental care and long-term growth—Pollution in three prototype growth models," Journal of Economics, Springer, vol. 58(1), pages 25-51, February. [Downloadable!] (restricted)
Lans Bovenberg, A. & Smulders, Sjak, 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Journal of Public Economics, Elsevier, vol. 57(3), pages 369-391, July. [Downloadable!] (restricted)

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Cited by:
(explanations, 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.)

Petr Hanel, 2003. "Impact Of Government Support Programs On Innovation By Canadian Manufacturing Firms," Cahiers de recherche 04-02, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
Pene Kalulumia & Denis Bolduc, 2004. "Generalized Mixed Estimation Of A Multinomial Discretecontinuous Choice Model For Electricity Demand," Cahiers de recherche 04-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]

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This page was last updated on 2009-11-20.

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