Basseti, Thomas and Benos, Nikos and Karagiannis, Stelios (2010): How policy can influence human capital accumulation and environment quality.
Download (581kB) | Preview
This paper considers the implications of education and environment policy for growth in a model where the interactions between health, education, and the environment are taken into account. With respect to previous works, in which one of these three dimensions is omitted, we consider their combined effects, arriving to novel results in the literature. According to our model, higher taxes and environment spending share in total public spending do not affect welfare significantly, but they have an important positive impact on human capital and environment quality. Here, a positive relationship between public education spending and environment quality emerges as well as between environment maintenance expenditure and human capital. At the same time, countries with a high environmental quality should spend less on environment maintenance compared to heavily polluted countries. Finally, for countries with advanced abatement technologies, the relationship between human capital and environment is positive, which is compatible with the environmental Kuznets curve.
|Item Type:||MPRA Paper|
|Original Title:||How policy can influence human capital accumulation and environment quality.|
|Keywords:||Fiscal policy; Health production; Human capital; Environment quality.|
|Subjects:||I - Health, Education, and Welfare > I1 - Health > I12 - Health Behavior
I - Health, Education, and Welfare > I2 - Education and Research Institutions > I28 - Government Policy
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy
|Depositing User:||Nikos Benos|
|Date Deposited:||31. Mar 2010 11:22|
|Last Modified:||28. Mar 2015 01:42|
Aghion, P. Howitt, P. Murtin, F. (2009). “The relationship between health and growth: when Lucas meets Nelson-Phelps”, OFCE / ANR, N° 2009-28, November, 1-30.
Antoci, A., Sodini, M. (2009). “Indeterminacy, bifurcations and chaos in an overlapping generations model with negative environmental externalities” MPRA Paper 13750, February, 1-15.
Arora, S. (2001). “Health, human productivity, and long-term economic growth”, The Journal of Economic History, 61, 3, September, 699-749.
Benos, N. (2010) “Education policy, growth and welfare”, Education Economics, 18, 1, March, 33–47.
Bloom, D.E, Canning, D., Sevilla, J. (2004). “The effect of health on economic growth: A production function approach”, World Development, 32, 1, 1–13.
Currais, L., Rivera, B., Rungo, P. (2010). “Effects of the complementarity of child nutrition and education on persistent deprivation”, Economics Letters, 106, 67–69.
Finlay, J. (2006). “Endogenous longevity and economic growth”, PGDA Working Paper 7, July, 1-28.
Gradus, R., Smulders, S. (1993). “The trade-off between environmental care and long-term growth-pollution in three prototype growth models”, Journal of Economics, 58, 1, 25-51.
Grimaud, A., Tournemaine., F. (2007). “Why can an environmental policy tax promote growth through the channel of education?”, Ecological Economics, 62, 27–36.
Gutierez, M-J. (2008), “Dynamic inefficiency in an overlapping generation economy with pollution and health costs”, Journal of Public Economic Theory, 10, 4, 563–594.
Hartman, R. Kwon, O-S (2005). “Sustainable growth and the environmental Kuznets curve”, Journal of Economic Dynamics & Control, 29, 1701–1736.
Jack, W., Lewis, M. (2009). “Health investments and economic growth macroeconomic evidence and microeconomic foundations”, The World Bank Development Economics Vice Presidency, March, Policy Research Working Paper 4877, 1-37.
John, A., Pecchenino, R. (1994), “An Overlapping Generations Model of Growth and the Environment”, The Economic Journal, 104, 427, 1393–1410.
Jouvet, P-A, Pestiau, P., Ponthiere, G. (2007). “Longevity and environmental quality in an OLG model”, Université Paris X-Nanterre Working Paper 2007-19, June, 1-21.
Kevin, M. M., Topel, R.H (2006). “The value of health and longevity”, Journal of Political Economy, 2006, 114, 5, 871-904.
Mariani, F., et al., (2010, forthcoming) “Life expectancy and the environment”, Journal of Economic Dynamics & Control, doi:10.1016/j.jedc.2009.11.007.
Osang, T., Sarkar, J. (2008). Endogenous mortality, human capital and economic growth, Journal of Macroeconomics, 30, 1423–1445.
Pautrel, X. (2009a). "Pollution and life expectancy: How environmental policy can promote growth", Ecological Economics, 2009, 68, 4, 1040-1051.
Pautrel, X. (2009b). “Health-enhancing activities and the environment: How competition for resources makes the environmental policy beneficial”, L.E.M.N.A WP 2009/28, October, 1-32.
Pautrel, X. (2009c). “Time-separable utility, leisure and human capital accumulation: What new implications for the environment-growth nexus?”, F.E.E.M. Working Paper 104.2009, 1-24.
Pautrel, X. (2009d). “Environmental policy, education and growth: A reappraisal when lifetime is finite”, L.E.M.N.A Working Paper 2009/27, October, 1-55.
Pautrel, X. (2009e). “Environmental policy, education and growth with finite lifetime: the role of the abatement technology”, November, 1-10.
Pautrel, X. (2008). “Reconsidering the impact of pollution on long-run growth when pollution influences health and agents have a finite-lifetime", Environmental and Resource Economics, 40, 1, 37-52.
Ricci, F. (2007). “Channels of transmission of environmental policy to economic growth: A survey of the theory”, Ecological Economics, 60, 688–699.
Suhrcke, M., McKee, M., Stuckler, D., Arce, R.S., Tsolova, S., Mortensen, J. (2006). “The contribution of health to the economy in the European Union”, Public Health, 120, 994–1001.
Tong, S. Gerber, R., Wolff, R. Verrall, K (2002). “Population health, environment and economic development”, Global Change & Human Health, 3, 1, 36-41.
Van Zon, A., Muysken, J. (2001). “Health and endogenous growth”, Journal of Health Economics, 20, 169–185.
Varvarigos, D. (2010, forthcoming). “Environmental degradation, longevity, and the dynamics of economic development”, Environmental and Resource Economics.
Weil, D.N. (2007). “Accounting for the effect of health on economic growth”, The Quarterly Journal of Economics, August, 1265-1306.