 How Will Demographic Characteristics of the Labor Force Matter for the Global Economy and Carbon Dioxide Emissions?Taoyuan Wei (), Qin Zhu and Solveig Glomsrød Ecological Economics, 2018, vol. 147, issue C, 197-207 Abstract: In many regions including the United States, Europe, Japan, and China, the proportion of the elderly in the population has been increasing in the past decades and will continue to do so in the coming decades. The aging process implies reduced labor supply, thus affecting economic growth and greenhouse gas emissions. This study explores whether and to what extent age-and-gender-specific labor force participation rates affect regional and global economies and associated emissions, using a computable general equilibrium (CGE) model. Assuming that labor supply is proportional to the population size will underestimate future economic growth and carbon dioxide (CO2) emissions in India, but overestimate economic growth and emissions substantially in the key aging regions of United States, European Union, Japan, Russia and China. Further, results show that participation of the elderly population in the labor market has the potential to considerably mitigate the negative impact of aging on the economy, although their effects differ across regions. Keywords: Computable general equilibrium (CGE); Population aging; Gender composition; Labor force participation; Carbon dioxide emissions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:147:y:2018:i:c:p:197-207 DOI: 10.1016/j.ecolecon.2018.01.017 Access Statistics for this article Ecological Economics is currently edited by C. J. Cleveland More articles in Ecological Economics from Elsevier |
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