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Intergenerational dynamics of environmental consciousness and economic growth: an OLG model analysis

Author

Listed:
  • Fatma Safi

    (University of Sfax)

  • Lobna Ben Hassen

    (Faculty of Economics and Management of Sfax)

Abstract

This paper explores the complex interactions between environmental awareness at different life stages, taxation policies, and human capital accumulation within an overlapping generations model featuring two-period-lived households. By conducting a comparative static analysis at the stable steady-state equilibrium, the study finds that higher environmental consciousness in early life promotes better long-term outcomes. In contrast, increased environmental awareness in later life and higher taxes present obstacles to capital accumulation. The research also highlights the pivotal role of human capital in enhancing environmental quality without significantly impacting physical capital.

Suggested Citation

  • Fatma Safi & Lobna Ben Hassen, 2024. "Intergenerational dynamics of environmental consciousness and economic growth: an OLG model analysis," Indian Economic Review, Springer, vol. 59(2), pages 491-523, December.
    • Handle: RePEc:spr:inecre:v:59:y:2024:i:2:d:10.1007_s41775-024-00234-y
    DOI: 10.1007/s41775-024-00234-y
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    More about this item

    Keywords

    Overlapping generations; Environmental quality; Environmental consciousness; Public education;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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