On the Joint Dynamics of Pollution and Capital Accumulation

Dimitrios Varvarigos ()

No 08/38, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: I construct an overlapping generations model in which (the endogenous) longevity is impeded by the stock of pollution and promoted by public health spending. I provide an alternative explanation for the so-called environmental Kuznets curve – an explanation which gives an active role to environmental quality as a contributing factor to capital accumulation and growth. I also examine how variations in environment-related parameters determine the effect of taxation in economic development.

Keywords: Overlapping generations; Pollution; Capital accumulation; Endogenous longevity (search for similar items in EconPapers)
JEL-codes: O41 Q56 (search for similar items in EconPapers)
Date: 2008-11, Revised 2009-01
New Economics Papers: this item is included in nep-dge and nep-env
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