Altruism, voluntary contributions and neutrality. The case of environmental quality
This paper develops an intertemporal model wherein production generates pollution, which is viewed by consumers as a public bad. There are two types of consumer: those who are altruistic and leave bequests to their children, and those who are pure life-cyclers. Both types voluntarily contribute to the quality of environment through environmental groups. It appears that, if bequests by altruists and voluntary contributions by all are positive, redistribution is neutral--which does not mean that pollution abatement and capital accumulation are optimal. To achieve optimality, one needs a tax on inheritance and a differential subsidy on all consumer contributions.
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