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Abatement Technology and the Environment-Growth Nexus with Education

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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 article challenges the conventional result that a tighter environmental tax has no long-run effect on human capital accumulation in the presence of pollution arising from final output production. It demonstrates that the technology used in the abatement sector determines the existence and the direction of the growth-effect. A tighter environmental tax rises (respectively reduces) human capital accumulation in the presence of pollution arising from final production, if the abatement sector is relatively more intensive in human (resp. physical) capital than final sector. That result always holds for finite lifetime but for infinite lifetime it only holds when labor supply is endogenous. The transitional impact of a tighter environmental policy is also investigated.

Suggested Citation

  • Xavier Pautrel, 2011. "Abatement Technology and the Environment-Growth Nexus with Education," Working Papers 2011.25, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2011.25
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:ecolec:v:142:y:2017:i:c:p:120-129 is not listed on IDEAS
    2. Karine Constant & Marion Davin, 2014. "Environmental Policy and Growth in a Model with Endogenous Environmental Awareness," AMSE Working Papers 1405, Aix-Marseille School of Economics, Marseille, France, revised Mar 2014.
    3. Xu, Bin & Lin, Boqiang, 2016. "Differences in regional emissions in China's transport sector: Determinants and reduction strategies," Energy, Elsevier, vol. 95(C), pages 459-470.
    4. Le Coent, Philippe & Préget, Raphaële & Thoyer, Sophie, 2017. "Compensating Environmental Losses Versus Creating Environmental Gains: Implications for Biodiversity Offsets," Ecological Economics, Elsevier, vol. 142(C), pages 120-129.
    5. Karine Constant & Marion Davin, 2016. "Environmental Policy and Growthwhen Environmental Awarenessis Endogenous," Working Papers 16-08, LAMETA, Universtiy of Montpellier.

    More about this item

    Keywords

    Growth; Environment; Overlapping Generations; Human Capital; Abatement;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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