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Growth and Demographic Change: Do Environmental Factors Matter?

  • Dimitrios Varvarigos

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  • Intan Zanariah Zakaria
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    We incorporate health-damaging pollution into a three period overlapping generations model in which life expectancy, fertility and economic growth are all endogenous. We show that environmental factors can cause significant changes to the economy’s demographics. In particular, the entrepreneurial choice of less polluting production processes, induced by environmental policy, can account for such demographic changes as higher longevity and lower fertility rates.

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    File URL: http://www.le.ac.uk/economics/research/repec/lec/leecon/dp11-46.pdf
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    Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 11/46.

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    Date of creation: Sep 2011
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    Handle: RePEc:lec:leecon:11/46
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    1. Cervellati, Matteo & Sunde, Uwe, 2007. "Human Capital, Mortality and Fertility: A Unified Theory of the Economic and Demographic Transition," IZA Discussion Papers 2905, Institute for the Study of Labor (IZA).
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    17. Jie Zhang & Junsen Zhang, 2005. "The Effect of Life Expectancy on Fertility, Saving, Schooling and Economic Growth: Theory and Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 45-66, 03.
    18. Liao, Pei-Ju, 2011. "Does demographic change matter for growth?," European Economic Review, Elsevier, vol. 55(5), pages 659-677, June.
    19. Komen, Marinus H.C. & Gerking, Shelby & Folmer, Henk, 1997. "Income and environmental R D: empirical evidence from OECD countries," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 505-515, November.
    20. Larry E. Jones & Rodolfo E. Manuelli, 2000. "Endogenous policy choice: the case of pollution and growth," Staff Report 276, Federal Reserve Bank of Minneapolis.
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