Why can an environmental policy tax promote growth through the channel of education?

Grimaud, André; Tournemaine, Frédéric

doi:10.1016/j.ecolecon.2006.11.006

Cited by 47 publications

(47 citation statements)

References 35 publications

(32 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…More recently, Grimaud and Tournemaine (2007) demonstrate that a tighter environmental policy promotes growth, in a model combining R&D and human capital accumulation, where education directly enters the utility function as a consumption good and knowledge from R&D reduces the flow of pollution emissions. By increasing the price of the good whose production pollutes the higher tax rate reduces the relative cost of education and therefore incites agents to invest in human capital accumulation.…”

Section: Introductionmentioning

confidence: 99%

Environmental Policy, Education and Growth: A Reappraisal When Lifetime Is Finite

Pautrel

2011

Macroecon. Dynam.

View full text Add to dashboard Cite

This article demonstrates that when finite lifetime is introduced in a Lucas (1988) growth model where the source of pollution is physical capital, the environmental policy may enhance the growth rate of a market economy, while pollution does not influence educational activities, labor supply is not elastic and human capital does not enter the utility function. The result arises from the "generational turnover effect" due to finite lifetime. It remains valid under conditions when the education sector uses final output besides time to accumulate human capital. Nevertheless, it does no longer hold when the source of pollution is output.Furthermore, this article demonstrates that ageing reduces the positive influence of the environmental policy when growth is driven by human capital accumulation à la Lucas (1988) and lifetime is finite. It also confirms for finite lifetime the result found by Vellinga (1999) with a single representative agent: environmental care does not influence optimal growth when utility is additive and pollution does not influence the ability of agents to be educated.

show abstract

Section: Introductionmentioning

confidence: 99%

Environmental Policy, Education and Growth: A Reappraisal When Lifetime Is Finite

Pautrel

2011

Macroecon. Dynam.

View full text Add to dashboard Cite

show abstract

“…Despite the existence of theoretical contributions about the relationship between human capital and growth on the one hand (Blankenau and Simpson, 2004) and human capital, innovation and the environment on the other (Gradus and Smulders, 1993;Hettich, 1998;Pautrel, 2008;Grimaud and Tournemaine, 2007;Ikazaki, 2006), the applied climate-economy literature has overlooked other forms of knowledge such as human capital.…”

Section: Introducing Human Capitalmentioning

confidence: 99%

Modeling Biased Technical Change - Implications for Climate Policy

2010

View full text Add to dashboard Cite

SummaryClimate-economy models aiming at quantifying the costs and effects of climate change impacts and policies have become important tools for climate policy decision-making. Although there are several important dimensions along which models differ, this paper focuses on a key component of climate change economics and policy, namely technical change. This paper tackles the issues of whether technical change is biased towards the energy sectors, the importance of the elasticity of substitution between factors in determining this bias and how mitigation policy is likely to affect it. The analysis is performed using the World Induced Technical Change model, WITCH. Three different versions of the model are proposed. The starting set-up includes endogenous technical change only in the energy sector. A second version introduces endogenous technical change in both the energy and non-energy sectors. A third version of the model embodies different sources of technical change, namely R&D and human capital. Although different formulations of endogenous technical change have only a minor influence on climate policy costs, the macroeconomic effects on knowledge and human capital formation can vary greatly. Keywords

show abstract

“…There is a wide literature on environmental policy in endogenous growth models, see Stokey (1998) with a focus on tax and voucher schemes, or Grimaud (1999) and Ono (2002) both analysing pollution permits. More recently, there was a shift of emphasis on human capital and R&D: Grimaud and Tournemaine (2007) as well as Pautrel (2012) work on the growth impact of environmental policy in corresponding endogenous growth settings. Our focus is different.…”

Section: Introductionmentioning

confidence: 99%

Green Attitude and Economic Growth

Ott

Soretz

2016

Environ Resource Econ

View full text Add to dashboard Cite

We analyse the interdependence between green attitude and equilibrium development of environmental quality in an endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more obvious. The time path of pollution as well as the evolution of equilibrium growth are shown to depend crucially on the determinants of green attitude. If green attitude improves with increasing wealth, e.g. as a consequence of an increase in environmental education, the economy converges to the sustainable growth path and in the long run, also the optimal level of environmental quality is realized. In contrast, pollution remains at a suboptimally high level if individual attitude towards the environment is influenced by pollution itself, that means, if individuals care the more about environmental issues the worse environmental quality. JEL-Classification: O1, O4, Q2, Q5

show abstract

Why can an environmental policy tax promote growth through the channel of education?

Cited by 47 publications

References 35 publications

Environmental Policy, Education and Growth: A Reappraisal When Lifetime Is Finite

Environmental Policy, Education and Growth: A Reappraisal When Lifetime Is Finite

Modeling Biased Technical Change - Implications for Climate Policy

Green Attitude and Economic Growth

Contact Info

Product

Resources

About