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Environmental Abatement and Intergenerational Distribution

Author

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  • Bovenberg, A.L.

    (Tilburg University, Center For Economic Research)

  • Heijdra, B.J.

Abstract

This paper employs an overlapping-generations model to explore the impact of public abatement on private investment and the intergenerational distribution of welfare. Whereas public abatement benefits the oldest generations in terms of non-environmental welfare, future generations gain most in terms of environmental welfare. The overall benefits tend to be smallest for the generations born at the time of the unanticipated policy shock. Public debt policy, however, can be employed to ensure that welfare gains are distributed more equally across the various generations. Such a policy implies that natural capital crowds out man-made capital.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bovenberg, A.L. & Heijdra, B.J., 1998. "Environmental Abatement and Intergenerational Distribution," Discussion Paper 1998-100, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:41d81e54-e442-49f9-bd76-b34e130b2dc4
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    More about this item

    Keywords

    overlapping generations; public environmental abatement; intergenerational welfare effects; debt policy;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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