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The dynamics of Environmentalism and the Environment

  • Ingmar Schumacher

    (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X)

We study the relationship between environmental preferences and the environment. Preferences are transmitted intergenerationally and through social interactions, where we assume that agents are more likely to adopt environmental preferences the larger the amount of pollution. In the basic setting we find that both converge non-monotonically towards an interior steady state. When including technical change we notice that there will be no change in the steady state level of the environment unless technical change is sufficiently strong, which stands in stark contrast to the literature. Upon introducing environmental laws we find that these may lead to a virtually pollution-free environment. This happens if environmental laws are implemented when public support is strong enough. 1 Department of Economics, Ecole Polytechnique, 91128 Palaiseau Cedex, France. email: ingmar.schumacher@polytechnique.edu. tel: 0033 169333038. The author kindly acknowledges the helpful comments by two anonymous referees.

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Paper provided by HAL in its series Working Papers with number hal-00392379.

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Date of creation: 07 Jun 2009
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Handle: RePEc:hal:wpaper:hal-00392379
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  17. Esther Hauk & Maria Sáez, 1999. "On the cultural transmission of corruption," Economics Working Papers 392, Department of Economics and Business, Universitat Pompeu Fabra.
  18. Brown, Kelly M. & Taylor, Laura O., 2000. "Do as you say, say as you do: evidence on gender differences in actual and stated contributions to public goods," Journal of Economic Behavior & Organization, Elsevier, vol. 43(1), pages 127-139, September.
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