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Altruism, Voluntary Contributions and Neutrality: The Case of Environmental Quality

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  • Pierre‐André Jouvet
  • Philippe Michel
  • Pierre Pestieau

Abstract

This paper develops an intertemporal model wherein production generates pollution, which is viewed by consumers as a public bad. There are two types of consumer: those who are altruistic and leave bequests to their children, and those who are pure life‐cyclers. Both types voluntarily contribute to the quality of environment through environmental groups. It appears that, if bequests by altruists and voluntary contributions by all are positive, redistribution is neutral—which does not mean that pollution abatement and capital accumulation are optimal. To achieve optimality, one needs a tax on inheritance and a differential subsidy on all consumer contributions.

Suggested Citation

  • Pierre‐André Jouvet & Philippe Michel & Pierre Pestieau, 2000. "Altruism, Voluntary Contributions and Neutrality: The Case of Environmental Quality," Economica, London School of Economics and Political Science, vol. 67(268), pages 465-475, November.
    • Handle: RePEc:bla:econom:v:67:y:2000:i:268:p:465-475
    DOI: 10.1111/1468-0335.00220
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    Cited by:

    1. Etner, Johanna & Jeleva, Meglena & Jouvet, Pierre-Andre, 2007. "Risk perceptions, voluntary contributions and environmental policy," Research in Economics, Elsevier, vol. 61(3), pages 130-139, September.
    2. Frédéric Gonand, 2019. "Inégalité intergénérationnelle et recyclage d’une taxe carbone," Revue économique, Presses de Sciences-Po, vol. 70(3), pages 411-440.
    3. Pierre-André Jouvet & Philippe Michel & Pierre Pestieau, 2008. "Public and private environmental spending: a political economy approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 9(3), pages 177-191, September.
    4. Gonand, Frédéric & Jouvet, Pierre-André, 2015. "The “second dividend” and the demographic structure," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 71-97.
    5. Mouez Fodha, 2009. "Protection mixte de l'environnement et externalités intergénérationnelles," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 843-852.
    6. Frédéric Gonand & Fakhri J. Hasanov & Lester C. Hunt, 2019. "Estimating the Impact of Energy Price Reform on Saudi Arabian Intergenerational Welfare using the MEGIR-SA Model," The Energy Journal, , vol. 40(3), pages 101-124, May.
    7. Bezin, Emeline, 2013. "The dynamics of environmental concern and the evolution of pollution," Working Papers 207983, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    8. Tetsuo Ono, 2007. "Environmental Tax Reform, Economic Growth, and Unemployment in an OLG Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 63(1), pages 133-161, March.
    9. Johanna Etner & Meglena Jeleva & Pierre‐Andre Jouvet, 2009. "Pessimism Or Optimism: A Justification To Voluntary Contributions Toward Environmental Quality," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 308-319, December.

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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