The Cost of Pollution on Longevity, Welfare and Economic Stability

Ran, Natacha; Seegmuller, Thomas

doi:10.1007/s10640-016-0041-3

Cited by 39 publications

(10 citation statements)

References 34 publications

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“…This result goes in the same direction of that obtained by Raffin and Seegmuller (2014) where, at the steady state, the indicator of health and the stock of physical capital are positively dependant. This means that the richer the economy, the better the health status, regardless of the pollution's level.…”

Section: Characterization Of the Equilibriumsupporting

confidence: 86%

Private health expenditures and environmental quality

Safi

Hassen

2017

Economics

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This paper presents a simple two-period overlapping generations model that contains environmental and health issues. It investigates an intergenerational conflict between old and young generations as regards two defensive expenditures offsetting the influence of a worsening environment represented here by health care and environmental investment. Workers support environmental maintenance while retirees prefer investing in health care. The authors have shown that an increasing support for private health expenditure leads to a higher level of capital accumulation and leads also to a higher level of environmental quality if the maintenance efforts are higher than consumption externalities. JEL D91 J11 Q20

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Section: Characterization Of the Equilibriumsupporting

confidence: 86%

Private health expenditures and environmental quality

Safi

Hassen

2017

Economics

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“…7 In Appendix D, we consider an alternative model to check the robustness of the results. Similar to Bhattacharya and Qiao (2007) and Raffin and Seegmuller (2017), the agent's health status is determined by private health-care expenditures, income per capita, and the stock of pollution. Although agents still treat income per capita and the stock of pollution as given, they can actively improve their longevity through private health-care expenditures.…”

Section: Endnotesmentioning

confidence: 99%

“…Chakraborty (2004) develops an overlapping generations (OLG) model with endogenous longevity. A strand of literature augments Chakraborty (2004) by introducing pollution as a determinant of longevity, thus theoretically capturing the link between pollution, longevity, agents’ incentive to save, and the accumulation of physical capital (Jouvet et al, 2010; Pautrel, 2009; Raffin & Seegmuller, 2014, 2017; Varvarigos, 2010, 2014). In the Stokey (1998) framework, firms choose the intensity of pollution, a higher value of which leads to higher output as well as more emissions.…”

Section: Introductionmentioning

confidence: 99%

Pollution permits, green taxes, and the environmental poverty trap

Wei

Aadland

2020

Review Development Economics

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We compare the steady states and transition dynamics under pollution permits and under green taxes in an overlapping generations model with endogenous longevity. Multiple steady states can emerge under pollution permits. One nontrivial steady state is an environmental poverty trap (EPT). This steady state is characterized by low capital and high pollution. An economy operating in the neighborhood will gravitate toward this steady state in the long run. The other nontrivial steady state featuring high capital and low pollution is desirable. A saddle path may lead to this desirable steady state.In contrast, the steady state under green taxes is unique and locally stable. We also design policies that prevent an economy from falling into the EPT under pollution permits. Our conclusion is that an economy can continue to consider pollution permits as an efficient environmental regulation but proceed with caution given the possibility of being drawn into an EPT.

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“…Environmental degradation is nonetheless fueled by production activity, 8 whereas cleaning activities supported by the government reduce it. In this paper, the dynamics of the stock of pollution is defined as follows (John & Pecchenino, 1994;Jouvet et al, 2005;Raffin & Seegmuller, 2016): NGAMI AND SEEGMULLER…”

Section: Environmental Degradationmentioning

confidence: 99%

Pollution and growth: The role of pension in the efficiency of health and environmental policies

Ngami

Seegmuller

2019

Int J of Economic Theory

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This paper analyses the eect of a pay-as-you-go pension system on the evolution of capital and pollution, and on the eciency of an environmental versus health policy. In an overlapping generations model (OLG), we introduce endogenous longevity that depends on pollution and health expenditures. Global dynamics may display multiple balanced growth paths (BGP). We show that by discouraging savings, a policy that promotes the pension system enlarges the environmental poverty trap. More surprisingly, the environmental policy has contrasted eects according to the signicance of the pension system. If it has a low size, a raise of the environmental policy enlarges the environmental poverty trap and leads to a rise in capital over pollution at the highest stationary equilibrium. In contrast, in economies where intergenerational solidarity is well developed, capital over pollution decreases at the highest BGP. In such a case, the environmental policy does not necessarily lead to a better longevity and growth.

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The Cost of Pollution on Longevity, Welfare and Economic Stability

Cited by 39 publications

References 34 publications

Private health expenditures and environmental quality

Private health expenditures and environmental quality

Pollution permits, green taxes, and the environmental poverty trap

Pollution and growth: The role of pension in the efficiency of health and environmental policies

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