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How policy can influence human capital accumulation and environment quality


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


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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    References listed on IDEAS

    1. Xavier Pautrel, 2010. "Environmental Policy, Education and Growth with Finite Lifetime: the Role of Abatement Technology," Working Papers 2010.70, Fondazione Eni Enrico Mattei.
    2. Xavier Pautrel, 2009. "Health-enhancing Activities and the Environment: How Competition for Resources Makes the Environmental Policy Beneficial," Working Papers 2009.111, Fondazione Eni Enrico Mattei.
    3. Pautrel, Xavier, 2009. "Pollution and life expectancy: How environmental policy can promote growth," Ecological Economics, Elsevier, vol. 68(4), pages 1040-1051, February.
    4. 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.
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    8. Grimaud, Andre & Tournemaine, Frederic, 2007. "Why can an environmental policy tax promote growth through the channel of education?," Ecological Economics, Elsevier, vol. 62(1), pages 27-36, April.
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    11. Philippe Aghion & Peter Howitt & Fabrice Murtin, 2011. "The Relationship Between Health and Growth: When Lucas Meets Nelson-Phelps," Review of Economics and Institutions, Università di Perugia, vol. 2(1).
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    21. Currais, Luis & Rivera, Berta & Rungo, Paolo, 2010. "Effects of the complementarity of child nutrition and education on persistent deprivation," Economics Letters, Elsevier, vol. 106(1), pages 67-69, January.
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    More about this item


    Fiscal policy; Health production; Human capital; Environment quality.;

    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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