Pollution and growth: The role of pension in the efficiency of health and environmental policies

Armel Ngami and Thomas Seegmuller

Post-Print from HAL

Abstract: This paper analyzes the effect of a pay-as-you-go pension system on the evolution of capital and pollution, and on the efficiency of an environmental versus health policy. In an overlapping generations model, we introduce endogenous longevity that depends on pollution and health expenditures. Global dynamics may display multiple balanced growth paths (BGPs). We show that by discouraging savings, a policy that promotes the pension system enlarges the environmental poverty trap. More surprisingly, the environmental policy has contrasting effects according to the significance of the pension system. If it has a small size, a more environmentally-friendly policy enlarges the environmental poverty trap and leads to a rise in capital over pollution at the highest stationary equilibrium. In contrast, in economies where intergenerational solidarity is well developed, capital over pollution decreases at the highest BGP. In such a case, the environmental policy does not necessarily lead to a better longevity and growth.

Keywords: endogenous growth; environment; health; longevity; pension system; pollution (search for similar items in EconPapers)
Date: 2021-11
Note: View the original document on HAL open archive server: https://amu.hal.science/hal-02428909
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in International Journal of Economic Theory, 2021, 17 (4), pp.390-415. ⟨10.1111/ijet.12247⟩

Downloads: (external link)
https://amu.hal.science/hal-02428909/document (application/pdf)

Related works:
Journal Article: Pollution and growth: The role of pension in the efficiency of health and environmental policies (2021)
Working Paper: Pollution and Growth: The Role of Pension on the Efficiency of Health and Environmental Policies (2018)
Working Paper: Pollution and Growth: The Role of Pension on the Efficiency of Health and Environmental Policies (2018)
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:hal:journl:hal-02428909

DOI: 10.1111/ijet.12247

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().