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Altruism, voluntary contributions and neutrality. The case of environmental quality

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  • JOUVET, Pierre André
  • MICHEL, Philippe
  • PESTIEAU, Pierre

Abstract

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.

Suggested Citation

  • JOUVET, Pierre André & MICHEL, Philippe & PESTIEAU, Pierre, 1996. "Altruism, voluntary contributions and neutrality. The case of environmental quality," CORE Discussion Papers 1996067, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:1996067
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    File URL: https://uclouvain.be/en/research-institutes/immaq/core/dp-1996.html
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    Cited by:

    1. Bettinger, Eric & Slonim, Robert, 2006. "Using experimental economics to measure the effects of a natural educational experiment on altruism," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1625-1648, September.
    2. Etner, Johanna & Jeleva, Meglena & Jouvet, Pierre-Andre, 2007. "Risk perceptions, voluntary contributions and environmental policy," Research in Economics, Elsevier, vol. 61(3), pages 130-139, September.
    3. Tetsuo Ono, 2007. "Environmental Tax Reform, Economic Growth, and Unemployment in an OLG Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(1), pages 133-161, March.
    4. Pierre-André Jouvet & Philippe Michel & Pierre Pestieau, 2008. "Public and private environmental spending: a political economy approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(3), pages 177-191, September.
    5. Johanna Etner & Meglena Jeleva & Pierre-Andre Jouvet, 2009. "Pessimism Or Optimism: A Justification To Voluntary Contributions Toward Environmental Quality ," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 308-319, December.
    6. Tetsuo Ono, 2009. "The political economy of environmental and social security policies: the role of environmental lobbying," Economics of Governance, Springer, vol. 10(3), pages 261-296, July.
    7. Emeline Bezin, 2013. "The dynamics of environmental concern and the evolution of pollution," Working Papers SMART - LERECO 13-09, INRA UMR SMART-LERECO.
    8. Mouez Fodha, 2009. "Protection mixte de l'environnement et externalités intergénérationnelles," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 843-852.
    9. Pierre-André Jouvet, 1998. "Voluntary Contributions with Uncertainty: The Environmental Quality," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 23(2), pages 151-165, December.
    10. Gonand, Frédéric & Jouvet, Pierre-André, 2015. "The “second dividend” and the demographic structure," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 71-97.

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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