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Effets des permis de pollution sur l'accumulation du capital dans le cadre des modèles à générations imbriquées

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  • Pierre-André Jouvet
  • Philippe Michel
  • Jean-Pierre Vidal

Abstract

The authors use an overlapping-generations model to study the effects of the introduction of a market for pollution permits and the effects of a variation in the number of permits on long-term capital accumulation. Pollution permits, viewed as a private right on the environment, lead to arbitrage between physical capital and environmental capital. The authors show that the effects can be negative or positive, depending on production function elasticities and agents? preferences. The study, with log-linear utility functions and CES production functions, underscores that the positive effects on production and wages dominate the arbitrage effect on savings when factors are complementary to each other and also, inversely, if they are sufficiently substitutable.

Suggested Citation

  • Pierre-André Jouvet & Philippe Michel & Jean-Pierre Vidal, 2002. "Effets des permis de pollution sur l'accumulation du capital dans le cadre des modèles à générations imbriquées," Economie & Prévision, La Documentation Française, vol. 156(5), pages 63-72.
    • Handle: RePEc:cai:ecoldc:ecop_156_0063
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    References listed on IDEAS

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    1. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    2. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    4. Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-149.
    5. van Egteren, Henry & Weber, Marian, 1996. "Marketable Permits, Market Power, and Cheating," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 161-173, March.
    6. Butler, Richard V & Maher, Michael D, 1982. "The Control of Externalities in a Growing Urban Economy," Economic Inquiry, Western Economic Association International, vol. 20(1), pages 155-163, January.
    7. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
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    Cited by:

    1. Pierre-André Jouvet & Fabien Prieur, 2006. "Permis de pollution et contraintes politiques dans un modèle à générations imbriquées," EconomiX Working Papers 2006-21, University of Paris Nanterre, EconomiX.
    2. Jules-Eric TCHAPCHET TCHOUTO, 2008. "Tradable Emission Permits & Environmental Maintenance in an Overlapping Generations General Equilibrium Model," EcoMod2008 23800141, EcoMod.

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