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Longevity, pollution and growth

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  • Natacha Raffin
  • Thomas Seegmuller

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.

Suggested Citation

  • Natacha Raffin & Thomas Seegmuller, 2012. "Longevity, pollution and growth," Working Papers 1210, Chaire Economie du climat.
    • Handle: RePEc:cec:wpaper:1210
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    Cited by:

    1. Constant, Karine & Davin, Marion, 2021. "Pollution, children’s health and the evolution of human capital inequality," Mathematical Social Sciences, Elsevier, vol. 112(C), pages 9-25.
    2. Karine Constant & Natacha Raffin, 2016. "Environnement, croissance et inégalités : le rôle particulier du canal de la santé," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 9-29.
    3. Sichao Wei & David Aadland, 2021. "Pollution permits, green taxes, and the environmental poverty trap," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1032-1052, May.
    4. Constant, Karine, 2019. "Environmental policy and human capital inequality: A matter of life and death," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 134-157.
    5. Armel Ngami & Thomas Seegmuller, 2021. "Pollution and growth: The role of pension in the efficiency of health and environmental policies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 17(4), pages 390-415, December.
    6. Богомолова А. С. & Колюжнов Д. В., 2017. "Построение dsge-модели с эндогенными показателями загрязнения, здоровья и экономического развития. Building a dsge model with the endogenous levels of pollution, health and economic development," Мир экономики и управления // Вестник НГУ. Cерия: Cоциально-экономические науки, Socionet;Новосибирский государственный университет, vol. 17(3), pages 5-18.
    7. Natacha Raffin & Thomas Seegmuller, 2017. "The Cost of Pollution on Longevity, Welfare and Economic Stability," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 683-704, November.
    8. Aditya Goenka & Saqib Jafarey & William Pouliot, 2012. "Pollution, Mortality and Optimal Environmental Policy," Discussion Papers 12-05, Department of Economics, University of Birmingham.
    9. Eddai, Nahed & Guerdjikova, Ani, 2023. "To mitigate or to adapt: How to deal with optimism, pessimism and strategic ambiguity?," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 1-30.
    10. Johanna Etner & Natacha Raffin & Thomas Seegmuller, 2016. ""The Falling Sperm Counts Story": A Limit to Growth?," AMSE Working Papers 1625, Aix-Marseille School of Economics, France, revised 04 Jul 2016.
    11. Nguyen Than Dao & Ottmar Edenhofer, 2014. "On the Fiscal Strategies of Escaping Poverty-Environment Traps (and) Towards Sustainable Growth," CESifo Working Paper Series 4865, CESifo.
    12. Boucekkine, Raouf & Seegmuller, Thomas & Venditti, Alain, 2021. "Advances in growth and macroeconomic dynamics: In memory of Carine Nourry," Mathematical Social Sciences, Elsevier, vol. 112(C), pages 1-6.
    13. Brembilla, Laurent, 2018. "Longevity and welfare in general equilibrium," Mathematical Social Sciences, Elsevier, vol. 93(C), pages 22-36.
    14. Nahed Eddai & Ani Guerdjikova, 2021. "To mitigate or to adapt: how to deal with optimism, pessimism and strategic ambiguity?," Working Papers hal-03590990, HAL.
    15. Dugan, Anna & Prskawetz, Alexia & Raffin, Natacha, 2022. "The Environment, Life Expectancy and Growth in Overlapping Generations Models: A Survey," ECON WPS - Working Papers in Economic Theory and Policy 01/2022, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    16. Dao, Nguyen Thang & Edenhofer, Ottmar, 2018. "On the fiscal strategies of escaping poverty-environment traps towards sustainable growth," Journal of Macroeconomics, Elsevier, vol. 55(C), pages 253-273.
    17. Goenka, Aditya & Jafarey, Saqib & Pouliot, William, 2020. "Pollution, mortality and time consistent abatement taxes," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 1-15.
    18. Karine Constant & Natacha Raffin, 2016. "Environnement, croissance et inégalités : le rôle particulier du canal de la santé," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 9-29.
    19. Karine Constant, 2015. "Environmental Policy and Inequality: A Matter of Life and Death," Working Papers halshs-01174052, HAL.
    20. Betti, Thierry & Lefebvre, Mathieu & Pestieau, Pierre, 2023. "Macroeconomics of aging," LIDAM Discussion Papers CORE 2023002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    21. Tatiana Tagaeva & Vadim Gilmundinov & Lidija Kazantseva, 2016. "Ecological Situation and Environmental Protection Policy in Russian Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 78-92.

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    More about this item

    Keywords

    Life expectancy; Pollution; Health; Growth;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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