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Life expectancy and the environment

We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental quality, depending on how much they expect to live, but also in order to leave good environmental conditions to future generations. In turn, environmental conditions affect life expectancy. The model produces multiple steady states (development regimes) and initial conditions do matter. In particular, some countries may be trapped in a low life expectancy / low environmental quality trap. This outcome is consistent with stylized facts relating life expectancy and environmental performance measures. Possible strategies to escape from this kind of trap are also discussed. Finally, this result is robust to the introduction of human capital through parental education expenditures.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2008/V08048.pdf
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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number v08048.

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Length: 24 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:mse:cesdoc:v08048
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  1. Pierre-André Jouvet & Philippe Michel & Gilles Rotillon, 2004. "Optimal growth with pollution : how to use pollution permits ?," Cahiers de la Maison des Sciences Economiques v04012, Université Panthéon-Sorbonne (Paris 1).
  2. DE LA CROIX, David & LICANDRO, Omar, 2007. "‘The child is father of the man’: implications for the demographic transition," CORE Discussion Papers 2007072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. JOUVET, Pierre-André & PESTIEAU, Pierre & PONTHIERE, Grégory, . "Longevity and environmental quality in an OLG model," CORE Discussion Papers RP 2377, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Masako Ikefuji & Ryo Horii, 2005. "Wealth Heterogeneity and Escape from the Poverty-Environment Trap," Discussion Papers in Economics and Business 05-09, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  5. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics.
  6. David Croix & Alessandro Sommacal, 2009. "A Theory of Medical Effectiveness, Differential Mortality, Income Inequality and Growth for Pre-Industrial England," Mathematical Population Studies, Taylor & Francis Journals, vol. 16(1), pages 2-35.
  7. DE LA CROIX, David & DOTTORI, Davide, 2007. "Easter Island’s collapse: A tale of a population race," CORE Discussion Papers 2007001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Blackburn, Keith & Cipriani, Giam Pietro, 2002. "A model of longevity, fertility and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(2), pages 187-204, February.
  9. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
  10. DE LA CROIX, David & SOMMACAL, Alessandro, 2006. "A theory of medicine effectiveness, differential mortality, income inequality and growth for pre-industrial England," CORE Discussion Papers 2006045, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
  12. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293 Elsevier.
  13. David, DE LA CROIX & Davide, DOTTORI, 2007. "Easter Island’s Collapse : A Tale of a Population Race," Discussion Papers (ECON - Département des Sciences Economiques) 2007005, Université catholique de Louvain, Département des Sciences Economiques.
  14. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
  15. DE LA CROIX, David & DOEPKE, Matthias, . "Public versus private education when differential fertility matters," CORE Discussion Papers RP 1727, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  16. Chichilnisky, Graciela & Heal, Geoffrey & Beltratti, Andrea, 1995. "The Green Golden Rule," Economics Letters, Elsevier, vol. 49(2), pages 175-179, August.
  17. Jouvet, P.-A. & Michel, P. & Vidal, J.-P., 1999. "Intergenerational Altruism and the Environment," G.R.E.Q.A.M. 99a03, Universite Aix-Marseille III.
  18. 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.
  19. Tetsuo Ono & Yasuo Maeda, 2001. "Is Aging Harmful to the Environment?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 20(2), pages 113-127, October.
  20. Evans, Mary F. & Smith, V. Kerry, 2005. "Do new health conditions support mortality-air pollution effects?," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 496-518, November.
  21. Baland, Jean-Marie & Platteau, Jean-Philippe, 2000. "Halting Degradation of Natural Resources: Is There a Role for Rural Communities?," OUP Catalogue, Oxford University Press, number 9780198290612, June.
  22. Shankha Chakraborty, 2002. "Endogenous Lifetime and Economic Growth," University of Oregon Economics Department Working Papers 2002-03, University of Oregon Economics Department, revised 26 Jan 2002.
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