Environmental policy, education and growth with finite lifetime: the role of the abatement technology

Xavier Pautrel (1)

1 LEMNA - Laboratoire d'économie et de management de Nantes Atlantique

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.

Domaines: Economies et finances; Gestion et management

Xavier Pautrel. Environmental policy, education and growth with finite lifetime: the role of the abatement technology. 2009. ⟨hal-00425537⟩