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On the optimal control of pollution in a human capital growth model

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  • Stefano Bosi
  • Lionel Ragot

Abstract

On the one hand, the adoption of polluting technologies can enhance the factor productivity; on the other hand, pollution lowers the stock of human capital by weakening physical and mental performances, and short-ening the life expectancy at the end. To capture the impact of pollution on economic growth, we compute the optimal policy in an endogenous growth model `a la Lucas (1988) and we study the effects of pollution in the short and the long run.

Suggested Citation

  • Stefano Bosi & Lionel Ragot, 2013. "On the optimal control of pollution in a human capital growth model," EconomiX Working Papers 2013-25, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2013-25
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    References listed on IDEAS

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    Cited by:

    1. Borissov, Kirill & Brausmann, Alexandra & Bretschger, Lucas, 2019. "Carbon pricing, technology transition, and skill-based development," European Economic Review, Elsevier, vol. 118(C), pages 252-269.
    2. Luca Spinesi, 2022. "The Environmental Tax: Effects on Inequality and Growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 529-572, July.

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    More about this item

    Keywords

    pollution; human capital; endogenous growth;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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