An Overlapping Generations Model of Growth and the Environment

John, Andrew; Pecchenino, Rowena A.

doi:10.2307/2235455

Cited by 419 publications

(256 citation statements)

References 22 publications

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“…Private agents, whose welfare depends on environmental quality and consumption, have the opportunity to devote part of their resources to environmental maintenance. In this respect, our model also extends the OLG models developed by John and Pecchenino (1994) and John et al (1995).…”

Section: Introductionmentioning

confidence: 74%

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Can Education Be Good for Both Growth and the Environment?

Bréchet

Prieur

2013

Macroecon. Dynam.

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We develop an overlapping generations model of growth and the environment with public policy on education. Beyond the traditional mechanisms through which knowledge, growth and the environment interplay, we stress out the role played by education on environmental awareness. Assuming first that environmental awareness is constant, we show the existence of a balanced growth path along which environmental quality increases continually. Then, if education enhances environmental awareness, the equilibrium properties are modified: the economy can reach a steady state or converge to an asymptotic balanced growth path. Therefore, education does not necessarily promote sustained and sustainable growth.

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Section: Introductionmentioning

confidence: 74%

“…In accordance with John and Pecchenino (1994), the preferences of the agent born at date t are defined on old age consumption c t+1 and environmental quality Q t+1 . They are described by the utility function U (c t+1 , Q t+1 ).…”

Section: The Householdsmentioning

confidence: 99%

Can Education Be Good for Both Growth and the Environment?

Bréchet

Prieur

2013

Macroecon. Dynam.

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“…Lopez (1994) and Selden and Song (1995) assume infinitely lived agents, exogenous technological change and that pollution is generated by production and not by consumption. John and Pecchenino (1994), John et al (1995), andMcConnell (1997) develop models based on overlapping generations where pollution is generated by consumption rather than by production activities. Additionally Stokey (1998) Stokey's (1998) model, arguing that satiation in consumption is needed to generate the EKC.…”

Section: Bmentioning

confidence: 99%

The Rise and Fall of the Environmental Kuznets Curve

2004

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This paper chronicles the story of the environmental Kuznets curve (EKC). The EKC proposes that indicators of environmental degradation first rise, and then fall with increasing income per capita. However, recent evidence shows that developing countries are addressing environmental issues, sometimes adopting developed country standards with a short time lag and sometimes performing better than some wealthy countries, and that the EKC results have a very flimsy statistical foundation. A new generation of decomposition models can help disentangle the true relations between development and the environment.

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“…Although the literature on this issue is mainly empirical, several papers have offered a theoretical explanation for this phenomenon known as the environmental Kuznets curve (EKC), see John and Pecchenino (1994), Selden and Song (1995) and Stokey (1998). 5 In the first two papers, non-negativity constraints are applied to expenditure on pollution abatement for a given technology.…”

Section: Introductionmentioning

confidence: 99%

Neoclassical Growth, Environment and Technological Change: the Environmental Kuznets Curve

Rubio¹,

Garcia²,

Hueso³

2009

The Energy Journal

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This paper investigates socially optimal patterns of economic growth and environmental quality in a neoclassical growth model with endogenous technological progress. In the model, environmental quality has a positive effect not only on utility but also on production. Moreover, cleaner technologies can be used in the economy if a part of the output is used in environmentally oriented R&D. In this framework, if the initial level of capital is low, then the shadow price of a cleaner technology is low in relation to the cost of developing it, given by the marginal utility of consumption, and it is not worth investing in R&D. Thus, there will be a first stage of growth based only on the accumulation of capital with environmental quality decreasing until there is enough pollution to make investing in R&D profitable. After this turning point, if the new technologies are efficient enough, the economy can evolve along a balanced growth path with increasing environmental quality. The result is that the optimal investment pattern supports an environmental Kuznets curve.

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An Overlapping Generations Model of Growth and the Environment

Cited by 419 publications

References 22 publications

Can Education Be Good for Both Growth and the Environment?

Can Education Be Good for Both Growth and the Environment?

The Rise and Fall of the Environmental Kuznets Curve

Neoclassical Growth, Environment and Technological Change: the Environmental Kuznets Curve

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