Date of This Version
May 2010
Abstract
This note shows that the assumptions about the abatement technology modify the impact of the environmental taxation on the long-run growth driven by human capital accumulation à la Lucas (1988), when lifetime is finite. Whereas no impact of the environmental policy on long-run growth is found when pollution originates from final output and abatement is an activity requiring final output to reduce net emissions, this note demonstrates that a tighter environmental tax enhances human capital accumulation when it is assumed that abatement services are produced with physical capital.
Recommended Citation
Pautrel, Xavier, "Environmental Policy, Education and Growth with Finite Lifetime: the Role of Abatement Technology" (May 27, 2010). Fondazione Eni Enrico Mattei Working Papers. Paper 459.
https://services.bepress.com/feem/paper459