Environmental Regulation and Economic Growth under Education Externalities
Using an extension of Lucas' model of endogenous growth with education externality, we show that an environmental tax may increase growth. This is because the tax makes physical capital accumulation less attractive, thereby correcting for the underinvestment by agents in human capital.
|Date of creation:||2002|
|Date of revision:||2004|
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Other publications TiSEM
6784bb12-71fb-45a5-bf7e-8, Tilburg University, School of Economics and Management.
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