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Title: Growth effects of environmental policy when pollution affects health
Authors: Aloi, M. 
Tournemaine, F. 
Keywords: Environmental policy;Growth;Health;Pollution
Issue Date: 2011
Publisher: Scopus
University of the Thai Chamber of Commerce
Source: M. Aloi, F. Tournemaine (2011) Growth effects of environmental policy when pollution affects health. Economic Modelling Vol.28 No.4, 1683-1695.
Journal: Economic Modelling 
Abstract: In this paper, we develop a R&based growth model with a pollution externality and a health production sector. We study how healthimpairing pollution affects long term growth, and the effect of an emissions' reduction policy (tax). We show that a tighter environmental tax has positive effects on growth via two channels. On the one hand, it improves workers' health and, thereby, productivity; on the other hand, it induces a reallocation of resources towards R& and, thereby, higher research intensity. The size of the growth effect of a tighter environmental tax, and the level of the optimal environmental tax, are both positivelycorrelated with the weight individuals place on health relative to consumption. As for welfare, a tighter environmental tax brings about utility gains in the long run and, potentially, also in the short run.
Rights: This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner.
Appears in Collections:RSO: Journal Articles

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