EconPapers    
Economics at your fingertips  
 

The Cost of Pollution on Longevity, Welfare and Economic Stability

Natacha Raffin () and Thomas Seegmuller ()

No 1433, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This paper presents an overlapping generations model where pollution, private and public healths are all determinants of longevity. Public expenditure, financed through labour taxation, provide both public health and abatement. We study the complementarity between the three components of longevity on welfare and economic stability. At the steady state, we show that an appropriate fiscal policy may enhance welfare. However, when pollution is heavily harmful for longevity, the economy might experience aggregate instability or endogenous cycles. Nonetheless, a fiscal policy, which raises the share of public spending devoted to health, may display stabilizing virtues and rule out cycles. This allows us to recommend the design of the public policy that may comply with the dynamic and welfare objectives.

Keywords: longevity; Pollution; welfare; complex dynamics (search for similar items in EconPapers)
JEL-codes: J10 O40 Q56 C62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dge, nep-ene and nep-hea
Date: 2014-07-16, Revised 2014-07-16
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.amse-aixmarseille.fr/sites/default/file ... d-economic-stability (application/pdf)

Related works:
Journal Article: The Cost of Pollution on Longevity, Welfare and Economic Stability (2017) Downloads
Working Paper: The cost of pollution on longevity, welfare and economic stability (2016)
Working Paper: The cost of pollution on longevity, welfare and economic stability (2014) Downloads
Working Paper: The Cost of Pollution on Longevity, Welfare and Economic Stability (2014) Downloads
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:aim:wpaimx:1433

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU - AMSE 5-9 Boulevard Maurice Bourdet, CS 50498 ​ 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Grégory Cornu ().

 
Page updated 2019-11-16
Handle: RePEc:aim:wpaimx:1433