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Aging society, health and the environment

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  • Balestra, Carlotta

    () (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

  • DOTTORI, Davide

Abstract

Both environmental quality and health care expenditure are determinants of health and life expectancy, but the support for them appears to be different according to the electors' age, with a relatively larger support for health expenditure among the elderly as it is generally effective on a shorter horizon than environmental maintenance. With population aging, the political support for health care expenditure is then self-reinforcing. We cast this issue in an overlapping generations model with endogenous longevity, where lifespan depends on health care expenditure and environmental quality. We compare the long run outcomes for health care expenditure, environmental quality, lifespan, consumption and capital accumulation of an economy where agents vote over health spending and environmental maintenance, with those chosen by a social planner who takes into account also the welfare of future generations. The role played by other factors, such as the propensity for smoothing consumption or the degree of annuity markets, is also highlighted. Empirical evidence of age-biased environmental care is provided.

Suggested Citation

  • Balestra, Carlotta & DOTTORI, Davide, 2009. "Aging society, health and the environment," CORE Discussion Papers 2009037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2009037
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    Cited by:

    1. Ponthiere, Gregory, 2016. "Pollution, unequal lifetimes and fairness," Mathematical Social Sciences, Elsevier, vol. 82(C), pages 49-64.
    2. Safi, Fatma, 2016. "Aging, private health expenditures and environment quality," Economics Discussion Papers 2016-39, Kiel Institute for the World Economy (IfW).
    3. repec:hal:journl:halshs-00492178 is not listed on IDEAS
    4. Wei-Bin Zhang, 2014. "Endogenous population with human and physical capital accumulation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 61(3), pages 231-252, September.
    5. Raffin, Natacha & Seegmuller, Thomas, 2014. "Longevity, pollution and growth," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 22-33.
    6. Wei-Bin, ZHANG, 2015. "Economic Oscillations With Endogenous Population, Human Capital And Wealth," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 6(2), pages 9-26.
    7. Gerlagh, Reyer & Jaimes, Richard & Motavasseli, Ali, 2017. "Global demographic change and climate policies," Discussion Paper 2017-035, Tilburg University, Center for Economic Research.
    8. Wei-Bin Zhang, 2016. "Endogenous Population Dynamics and Economic Growth with Free Trade between Countries," Social Sciences and Education Research Review, Department of Communication, Journalism and Education Sciences, University of Craiova, vol. 3(1), pages 3-30, May.
    9. Horst Hanusch & Florian Wackermann, 2011. "Can a Progressive Capital Gains Tax Help Avoid the Next Crisis? Public Sector Governance in a Comprehensive Neo-Schumpeterian System," Chapters,in: The Global Financial Crisis, chapter 3 Edward Elgar Publishing.
    10. Wei-Bin Zhang, 2017. "Economic Development and Environmental Change with Endogenous Birth and Mortality Rates," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(1), pages 77-97, March.
    11. Vella, Eugenia & Dioikitopoulos, Evangelos V. & Kalyvitis, Sarantis, 2015. "Green Spending Reforms, Growth, And Welfare With Endogenous Subjective Discounting," Macroeconomic Dynamics, Cambridge University Press, vol. 19(06), pages 1240-1260, September.
    12. Schumacher, Ingmar, 2014. "An Empirical Study of the Determinants of Green Party Voting," Ecological Economics, Elsevier, vol. 105(C), pages 306-318.
    13. Wei-Bin Zhang, 2016. "Population Growth And Preference Change In A Generalized Solow Growth Model With Gender Time Distributions," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 7-30, September.
    14. Safi, Fatma & Ben Hassen, Lobna, 2017. "Private health expenditures and environmental quality," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 11, pages 1-24.
    15. Wei-Bin Zhang, 2014. "Population Change with Endogenous Birth and Mortality Rates, Wealth Accumulation, and Renewable Resource Change," International Journal of Economic Sciences, University of Economics, Prague, vol. 2014(3), pages 103-129.
    16. Motavasseli, Ali, 2016. "Essays in environmental policy and household economics," Other publications TiSEM b32e287e-169b-4e89-9878-1, Tilburg University, School of Economics and Management.
    17. Zhang W.B., 2015. "Birth And Mortality Rates, Gender Division Of Labor, And Time Distribution In The Solow Growth Model," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 24(1), pages 121-134.
    18. Grégory Ponthière, 2014. "Pollution, Unequal Lifetimes and Fairness," Working Papers hal-01095463, HAL.
    19. Ponthiere, Gregory, 2016. "Pollution, unequal lifetimes and fairness," Mathematical Social Sciences, Elsevier, vol. 82(C), pages 49-64.

    More about this item

    Keywords

    population aging; endogenous longevity; environmental and health expenditure; annuity markets; inter-generational conflict; overlapping generations;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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