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Altruism, voluntary contributions and neutrality. The case of environmental quality

Pierre-André Jouvet, Philippe Michel and Pierre Pestieau

No 1996067, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper develops an intertemporal model wherein production generates pollution, which is viewed by consumers as a public bad. There are two types of consumer: those who are altruistic and leave bequests to their children, and those who are pure life-cyclers. Both types voluntarily contribute to the quality of environment through environmental groups. It appears that, if bequests by altruists and voluntary contributions by all are positive, redistribution is neutral--which does not mean that pollution abatement and capital accumulation are optimal. To achieve optimality, one needs a tax on inheritance and a differential subsidy on all consumer contributions.

Date: 1996-12-01
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Related works:
Journal Article: Altruism, Voluntary Contributions and Neutrality: The Case of Environmental Quality (2000) Downloads
Working Paper: Altruism, voluntary contributions and neutrality: the case of environmental quality (2000)
Working Paper: Altruism, Voluntary Contributions and Neutrality. The Case of Environmental Quality (1996)
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