On the joint dynamics of pollution and capital accumulation
reportposted on 26.02.2010, 15:41 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.