Growth and Demographic Change: Do Environmental Factors Matter?

Dimitrios Varvarigos () and Intan Zanariah Zakaria

No 11/46, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We incorporate health-damaging pollution into a three period overlapping generations model in which life expectancy, fertility and economic growth are all endogenous. We show that environmental factors can cause significant changes to the economy’s demographics. In particular, the entrepreneurial choice of less polluting production processes, induced by environmental policy, can account for such demographic changes as higher longevity and lower fertility rates.

Keywords: Economic growth; Pollution; Demography (search for similar items in EconPapers)
JEL-codes: J10 O41 Q56 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-dem, nep-dge, nep-env and nep-res
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