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On the Joint Dynamics of Pollution and Capital Accumulation

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  • Dimitrios Varvarigos

    ()

Abstract

I construct an overlapping generations model in which (the endogenous) longevity is impeded by the stock of pollution and promoted by public health spending. I provide an alternative explanation for the so-called environmental Kuznets curve – an explanation which gives an active role to environmental quality as a contributing factor to capital accumulation and growth. I also examine how variations in environment-related parameters determine the effect of taxation in economic development.

Suggested Citation

  • Dimitrios Varvarigos, 2008. "On the Joint Dynamics of Pollution and Capital Accumulation," Discussion Papers in Economics 08/38, Department of Economics, University of Leicester, revised Jan 2009.
  • Handle: RePEc:lec:leecon:08/38
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    File URL: http://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp08-38.pdf
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    References listed on IDEAS

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    1. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151.
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    Keywords

    Overlapping generations; Pollution; Capital accumulation; Endogenous longevity;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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