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- handle: 10670/1.c6umfg
- halshs: halshs-00964540
info:eu-repo/semantics/OpenAccess
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Environmental management--Government policy Environment and state Environmental control State and environment Environmental quality--Government policy Environmental protection--Government policy Students--Education Children--Education Education of children Schooling Pedagogy Youth--Education Instruction Education, Primitive Human resource developmentCiter ce document
Karine Constant et al., « Environmental Policy and Growth in a Model with Endogenous Environmental Awareness », HAL-SHS : économie et finance, ID : 10670/1.c6umfg
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This paper examines the relationship between environmental policy and growth when green preferences are endogenously determined by education and pollution. The government can implement a tax on pollution and recycle the revenue in public pollution abatement and/or education subsidy (influencing green behaviors). When agent's preferences for the environment are highly sensitive to environmental damages, the economy can converge to a balanced growth path equilibrium with damped oscillations. Therefore, we identify two objectives that environmental policy seeks to address: remove oscillations, source of intergenerational inequalities, and enhance the long-term growth rate. We show that a tighter tax allows to achieve both objectives when the tax revenue is well allocated between education and direct environmental protection.