Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/53418 
Authors: 
Year of Publication: 
2011
Series/Report no.: 
Nota di Lavoro No. 25.2011
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
This article challenges the conventional result that a tighter environmental tax has no long-run effect on human capital accumulation in the presence of pollution arising from final output production. It demonstrates that the technology used in the abatement sector determines the existence and the direction of the growth-effect. A tighter environmental tax rises (respectively reduces) human capital accumulation in the presence of pollution arising from final production, if the abatement sector is relatively more intensive in human (resp. physical) capital than final sector. That result always holds for finite lifetime but for infinite lifetime it only holds when labor supply is endogenous. The transitional impact of a tighter environmental policy is also investigated.
Subjects: 
Growth
Environment
Overlapping Generations
Human Capital
Abatement
JEL: 
Q5
Q58
Document Type: 
Working Paper

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