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Environmental Policy, Education and Growth with Finite Lifetime: the Role of Abatement Technology

Author

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  • Xavier Pautrel

    (Université de Nantes, Laboratoire d’Économie et de Management de Nantes (LEMNA), Institut d’Économie et de Management de Nantes - IAE)

Abstract

This note shows that the assumptions about the abatement technology modify the impact of the environmental taxation (both the size and the “direction”) on the long-run growth driven by human capital accumulation à la Lucas (1988), when the source of pollution is private consumption and lifetime is finite. When the human capital’s share in the abatement services production is higher (respectively lower) than in the final output production, a higher environmental tax reduces (resp. increases) the allocation of human capital in production sectors (abatement service and final output) and boostes (resp. decreases) the BGP rate of growth. When abatement services are produced with the final output, the environmental taxation does not influence growth.

Suggested Citation

  • Xavier Pautrel, 2010. "Environmental Policy, Education and Growth with Finite Lifetime: the Role of Abatement Technology," Working Papers 2010.70, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2010.70
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    Cited by:

    1. Basseti, Thomas & Benos, Nikos & Karagiannis, Stelios, 2010. "How policy can influence human capital accumulation and environment quality," MPRA Paper 21754, University Library of Munich, Germany.

    More about this item

    Keywords

    Growth; Environment; Overlapping Generations; Human capital; Finite Lifetime; Abatement;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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