Voluntary Contributions with Uncertainty: the Environmental Quality
This paper presents an overlapping generations model of environmental externalities with a depollution technology. each agent concerned by the environmental degradation can volutary contribute in order to reduce it. Contributing to the environmental quality means financing depollution activities and uncertainty concerns its efficiency since it's not always clear or certain what effects will result from a reduction of pollution. We show that if an agent is sufficiently risk averse, voluntary contribution is a decreasing function of average efficiency of depollution technology. If on the contrary, the sustitution effect is weaker than the pollution effect, the opposite holds. We show that precaution about environmental quality has two possible consequencies with depend on agent risk aversion. Therefore, understanding the implication of precautionnary attitude, leads us to the consideration of the agent's risk aversion characterization and studying the effect of an increase in risk aversion implies a knowledge on prudent attitude. so, we have to conclude that precaution and risk aversion are two complementary and indissociable concepts.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1995|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.greqam.fr/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Feldstein, 1986.
"The Effects of Fiscal Policies When Incomes are Uncertain: A Contradiction to Ricardian Equivalence,"
NBER Working Papers
2062, National Bureau of Economic Research, Inc.
- Feldstein, Martin, 1988. "The Effects of Fiscal Policies when Incomes Are Uncertain: A Contradiction to Ricardian Equivalence," American Economic Review, American Economic Association, vol. 78(1), pages 14-23, March.
- B. Douglas Bernheim & Kyle Bagwell, 1986.
"Is Everything Neutral?,"
NBER Working Papers
2086, National Bureau of Economic Research, Inc.
- John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
- Kimball, Miles S. & Mankiw, N. Gregory, 1989.
"Precautionary Saving and the Timing of Taxes,"
3443105, Harvard University Department of Economics.
- Graciela Chichilnisky & Geoffrey Heal, 1993. "Global Environmental Risks," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 65-86, Fall.
- Philippe Michel & Gilles Rotillon, 1995. "Disutility of pollution and endogenous growth," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(3), pages 279-300, October.
- Kihlstrom, Richard E. & Mirman, Leonard J., 1974. "Risk aversion with many commodities," Journal of Economic Theory, Elsevier, vol. 8(3), pages 361-388, July.
- Chichilnisky, G. & Heal, G., 1993. "Global Environmental Risks," Discussion Papers 1993_03, Columbia University, Department of Economics.
- Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, vol. 19(1), pages 131-138, October.
- Jouvet, Pierre-Andre & Michel, Philippe & Pestieau, Pierre, 2000.
"Altruism, Voluntary Contributions and Neutrality: The Case of Environmental Quality,"
London School of Economics and Political Science, vol. 67(268), pages 465-75, November.
- JOUVET, Pierre AndrÃ© & 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).
- JOUVET, Pierre-AndrÃ© & MICHEL, Philippe & PESTIEAU, Pierre, . "Altruism, voluntary contributions and neutrality: the case of environmental quality," CORE Discussion Papers RP 1484, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jouvet, P-A. & Michel, P. & Pestieau, P., 1996. "Altruism, Voluntary Contributions and Neutrality. The Case of Environmental Quality," G.R.E.Q.A.M. 96a32, Universite Aix-Marseille III.
- Marini Giancarlo & Scaramozzino Pasquale, 1995. "Overlapping Generations and Environmental Control," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 64-77, July.
- Solow, Robert M, 1986. " On the Intergenerational Allocation of Natural Resources," Scandinavian Journal of Economics, Wiley Blackwell, vol. 88(1), pages 141-49.
- Warr, Peter G., 1983. "The private provision of a public good is independent of the distribution of income," Economics Letters, Elsevier, vol. 13(2-3), pages 207-211.
- Gollier, C. & Jullien, B. & Treich, N., 1997. "Learning and Irreversibility: An Econmic Interpretation of the "Precautionnary Principle"," Papers 97.470, Toulouse - GREMAQ.
When requesting a correction, please mention this item's handle: RePEc:fth:aixmeq:97a30. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.