On the joint dynamics of pollution and capital accumulation

2010-02-26T15:41:52Z (GMT) by Dimitrios Varvarigos
I construct an overlapping generations model in which longevity is impeded by the stock of pollution and promoted by public health spending. I provide an alternative explanation for the so-called environmental Kuznets curve – an explanation which gives an active role to environmental quality as a contributing factor to capital accumulation and growth. I also examine how variations in environment-related parameters determine the effect of taxation in economic development.