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How policy can influence human capital accumulation and environment quality

Author

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  • Basseti, Thomas
  • Benos, Nikos
  • Karagiannis, Stelios

Abstract

This paper considers the implications of education and environment policy for growth in a model where the interactions between health, education, and the environment are taken into account. With respect to previous works, in which one of these three dimensions is omitted, we consider their combined effects, arriving to novel results in the literature. According to our model, higher taxes and environment spending share in total public spending do not affect welfare significantly, but they have an important positive impact on human capital and environment quality. Here, a positive relationship between public education spending and environment quality emerges as well as between environment maintenance expenditure and human capital. At the same time, countries with a high environmental quality should spend less on environment maintenance compared to heavily polluted countries. Finally, for countries with advanced abatement technologies, the relationship between human capital and environment is positive, which is compatible with the environmental Kuznets curve.

Suggested Citation

  • Basseti, Thomas & Benos, Nikos & Karagiannis, Stelios, 2010. "How policy can influence human capital accumulation and environment quality," MPRA Paper 21754, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21754
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    File URL: https://mpra.ub.uni-muenchen.de/21754/1/MPRA_paper_21754.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Fiscal policy; Health production; Human capital; Environment quality.;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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