The Political Economy of Environmental Taxes with an Aging Population

Tetsuo Ono

Environmental & Resource Economics, 2005, vol. 30, issue 2, 165-194

Abstract: This paper develops a two-period overlapping-generations model with environmental externalities and uncertain lifetimes, and studies how two sources of population aging, greater longevity and a lower rate of population growth, affect the politically determined environmental tax and the quality of the environment. It is shown that greater longevity and a lower rate of population growth have entirely different effects on these factors; greater longevity has no effect on the environmental tax and has a non-positive effect on the environmental quality, whereas a lower rate of population growth has a negative effect on the tax and has a positive effect on the quality. In addition, the political decision-making on the tax leads to an inefficient allocation of capital and environmental quality. Copyright Springer 2005

Keywords: environmental taxes; overlapping generations; political economy; population aging (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10640-004-1517-0 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:30:y:2005:i:2:p:165-194

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-004-1517-0

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().