Pollution and growth: The role of pension in the efficiency of health and environmental policies - HAL-SHS - Sciences de l'Homme et de la Société Accéder directement au contenu
Article Dans Une Revue International Journal of Economic Theory Année : 2021

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

Résumé

This paper analyzes the effect of a pay-as-you-go pension system on the evolution of capital and pollution, and on the efficiency of an environmental versus health policy. In an overlapping generations model, we introduce endogenous longevity that depends on pollution and health expenditures. Global dynamics may display multiple balanced growth paths (BGPs). We show that by discouraging savings, a policy that promotes the pension system enlarges the environmental poverty trap. More surprisingly, the environmental policy has contrasting effects according to the significance of the pension system. If it has a small size, a more environmentally-friendly 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.
Fichier principal
Vignette du fichier
Pollution and growth_NS_2021.pdf (309.48 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)

Dates et versions

hal-02428909 , version 1 (03-01-2022)

Identifiants

Citer

Armel Ngami, Thomas Seegmuller. Pollution and growth: The role of pension in the efficiency of health and environmental policies. International Journal of Economic Theory, 2021, 17 (4), pp.390-415. ⟨10.1111/ijet.12247⟩. ⟨hal-02428909⟩
47 Consultations
68 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More