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Abatement technology and the environment-growth nexus with education

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  • Xavier Pautrel

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

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 hal-00570312, HAL.
    • Handle: RePEc:hal:wpaper:hal-00570312
    Note: View the original document on HAL open archive server: https://hal.science/hal-00570312
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    Cited by:

    1. 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, France, revised Mar 2014.
    2. 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.
    3. Constant, Karine & Davin, Marion, 2019. "Environmental Policy And Growth When Environmental Awareness Is Endogenous," Macroeconomic Dynamics, Cambridge University Press, vol. 23(3), pages 1102-1136, April.
    4. Lei Wen & Fei Yan, 2018. "Regional differences and influencing factors in the CO2 emissions of China’s power industry based on the panel data models considering power-consuming efficiency factor," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(5), pages 1987-2007, October.
    5. 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.

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    More about this item

    Keywords

    Growth; Environment; Overlapping generations; Human capital; Abate- ment;
    All these keywords.

    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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