Life Expectancy and the Environment

Fabio Mariani (), Agustín Pérez-Barahona () and Natacha Raffin
Additional contact information
Agustín Pérez-Barahona: Ecole Polytechnique, Paris

No 4564, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental care, depending on how much they expect to live. In turn, environmental conditions affect life expectancy. As a result, our model produces a positive correlation between longevity and environmental quality, both in the long-run and along the transition path. Eventually, multiple equilibria may also arise: some countries might be caught in a low-life-expectancy / low-environmental-quality trap. This outcome is consistent with stylized facts relating life expectancy and environmental performance measures. We also discuss the welfare and policy implications of the intergenerational externalities generated by individual choices. Finally, we show that our results are robust to the introduction of growth dynamics based on physical or human capital accumulation.

Keywords: environmental quality; life expectancy; poverty traps; human capital (search for similar items in EconPapers)
JEL-codes: J24 O11 O40 Q56 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2009-11
New Economics Papers: this item is included in nep-dge, nep-env and nep-hap
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Journal of Economic Dynamics and Control, 2010, 34 (4), 798-815

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Related works:
Journal Article: Life expectancy and the environment (2010)
Working Paper: Life expectancy and the environment (2010)
Working Paper: Life expectancy and the environment (2010)
Working Paper: Life expectancy and the environment (2008)
Working Paper: Life expectancy and the environment (2008)
Working Paper: Life expectancy and the environment (2008)
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