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Life expectancy and the environment

Fabio Mariani (), Agustin Perez Barahona and Natacha Raffin ()
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Agustin Perez Barahona: ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech

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Abstract: We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental care, depending on how much they expect to live. In turn, environmental conditions affect life expectancy. As a result, our model produces a positive correlation between longevity and environmental quality, both in the long-run and along the transition path. Eventually, multiple equilibria may also arise: some countries might be caught in a low-life-expectancy/low-environmental-quality trap. This outcome is consistent with stylized facts relating life expectancy and environmental performance measures. We also discuss the welfare and policy implications of the inter-generational externalities generated by individual choices. Finally, we show that our results are robust to the introduction of growth dynamics based on physical or human capital accumulation.

Keywords: ENVIRONMENTAL QUALITY; LIFE EXPECTANCY; POVERTY TRAPS; HUMAN CAPITAL; PARTICULATE AIR POLLUTION; ECONOMIC GROWTH; ADULT MORTALITY; EASTERN EUROPE; HUMAN HEALTH; EXPOSURE; ECOSYSTEMS; MODEL; TRAPPE A PAUVRETE (search for similar items in EconPapers)
Date: 2010
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01172980
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Published in Journal of Economic Dynamics and Control, Elsevier, 2010, 34 (4), pp.798-815. ⟨10.1016/j.jedc.2009.11.007⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01172980

DOI: 10.1016/j.jedc.2009.11.007

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