Reassessing the effects of environmental taxation when pollution affects health over the life-cycle

TitreReassessing the effects of environmental taxation when pollution affects health over the life-cycle
Type de publicationArticle de revue
AuteurMathieu-Bolh, Nathalie, Pautrel, Xavier
PaysPays-Bas
EditeurElsevier
VilleAmsterdam
TypeArticle scientifique dans une revue à comité de lecture
Année2016
LangueAnglais
Datejanv. 2016
Pagination310-321
Volume52
SectionPartie B
Titre de la revueEconomic Modelling
ISSN0264-9993
Mots-clésEnvironmental tax, health, Life-cycle, Overlapping generations, Pollution
Résumé en anglais

We introduce the link between pollution, morbidity and productivity over the life-cycle in a two-period overlapping generations model. As the environmental tax improves the health-profile over the life-cycle, it influences saving, investment in health, labor supply and retirement. As a result, we identify effects of environmental taxation beyond the standard crowding-out and productivity effects captured by the past literature. We show that whether those effects are positive or negative for the economy crucially depends on the degree of substitutability between young and old labor. Our numerical examples suggest that that those new effects alleviate the negative effects of environmental taxation on output and decrease potential positive welfare effects.

URL de la noticehttp://okina.univ-angers.fr/publications/ua14753
DOI10.1016/j.econmod.2015.09.002
Lien vers le document

http://www.sciencedirect.com/science/article/pii/S0264999315002485