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The Great Transition: Implications From Environmental Policy For The Quality–Quantity Trade-Off In Children-Rearing

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  • FREDERIC TOURNEMAINE

    (Faculty of Economics, Chulalongkorn University, Phayathai Road, Pathumwan, Bangkok 10330, Thailand)

  • CHRISTOPHER TSOUKIS

    (Keele Management School, Keele University, Staffordshire, ST5 5BG, UK)

Abstract

We develop an overlapping-generations model with human capital accumulation and endogenous fertility containing a pollution externality. We study the effects of an environmental policy on individuals’ quality–quantity trade-off on children. In a Malthusian poverty trap, we show that a more stringent policy induces a reduction of fertility. In a state of perpetual development, we find a similar result and show that higher environmental quality, growth and welfare are compatible goals. Moreover, we show that the policy can be used as an instrument for initiating a country’s great transition from a state of poverty to a state of development.

Suggested Citation

  • Frederic Tournemaine & Christopher Tsoukis, 2018. "The Great Transition: Implications From Environmental Policy For The Quality–Quantity Trade-Off In Children-Rearing," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(05), pages 1155-1174, December.
    • Handle: RePEc:wsi:serxxx:v:63:y:2018:i:05:n:s021759081550112x
    DOI: 10.1142/S021759081550112X
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