IDEAS home Printed from https://ideas.repec.org/p/zbw/tuweco/012022.html
   My bibliography  Save this paper

The Environment, Life Expectancy and Growth in Overlapping Generations Models: A Survey

Author

Listed:
  • Dugan, Anna
  • Prskawetz, Alexia
  • Raffin, Natacha

Abstract

It is widely accepted that environmental and demographic changes will significantly influence the future of our society. In recent years, an increasing number of studies has analyzed the interlinkages among economic growth, environmental factors and a specific demographic variable, namely life expectancy, applying an overlapping generations framework. The aim of this survey is threefold. First, we review the role of life expectancy and pollution for sustainable growth. Second, we discuss the role of intervening factors like health investment and technological progress as well as institutional settings including government expenditures, tax structures and inequality. Finally, we summarize policy implications obtained in different models and compare them to each other.

Suggested Citation

  • Dugan, Anna & Prskawetz, Alexia & Raffin, Natacha, 2022. "The Environment, Life Expectancy and Growth in Overlapping Generations Models: A Survey," ECON WPS - Working Papers in Economic Theory and Policy 01/2022, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    • Handle: RePEc:zbw:tuweco:012022
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/249587/1/econ-wp01-2022.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ponthiere, Gregory, 2016. "Pollution, unequal lifetimes and fairness," Mathematical Social Sciences, Elsevier, vol. 82(C), pages 49-64.
    2. Mariani, Fabio & Pérez-Barahona, Agustín & Raffin, Natacha, 2010. "Life expectancy and the environment," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 798-815, April.
    3. Natacha Raffin & Thomas Seegmuller, 2017. "The Cost of Pollution on Longevity, Welfare and Economic Stability," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 683-704, November.
    4. Raffin, Natacha & Seegmuller, Thomas, 2014. "Longevity, pollution and growth," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 22-33.
    5. de la Croix, David & Licandro, Omar, 1999. "Life expectancy and endogenous growth," Economics Letters, Elsevier, vol. 65(2), pages 255-263, November.
    6. Varvarigos, Dimitrios, 2014. "Endogenous longevity and the joint dynamics of pollution and capital accumulation," Environment and Development Economics, Cambridge University Press, vol. 19(4), pages 393-416, August.
    7. repec:hal:pseose:halshs-00555625 is not listed on IDEAS
    8. Constant, Karine, 2019. "Environmental policy and human capital inequality: A matter of life and death," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 134-157.
    9. Pautrel, Xavier, 2009. "Pollution and life expectancy: How environmental policy can promote growth," Ecological Economics, Elsevier, vol. 68(4), pages 1040-1051, February.
    10. Fabio Mariani & Agustin Perez Barahona & Natacha Raffin, 2010. "Life expectancy and the environment," PSE-Ecole d'économie de Paris (Postprint) hal-00638730, HAL.
    11. Mouez Fodha & Thomas Seegmuller, 2014. "Environmental Quality, Public Debt and Economic Development," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(4), pages 487-504, April.
    12. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    13. Kalemli-Ozcan, Sebnem, 2002. "Does the Mortality Decline Promote Economic Growth?," Journal of Economic Growth, Springer, vol. 7(4), pages 411-439, December.
    14. Andreas Schaefer, 2020. "Inequality, survival to adulthood, and the growth drag of pollution," Oxford Economic Papers, Oxford University Press, vol. 72(1), pages 59-79.
    15. Dao, Nguyen Thang & Edenhofer, Ottmar, 2018. "On the fiscal strategies of escaping poverty-environment traps towards sustainable growth," Journal of Macroeconomics, Elsevier, vol. 55(C), pages 253-273.
    16. X. Pautrel, 2008. "Reconsidering the Impact of the Environment on Long-run Growth when Pollution Influences Health and Agents have a Finite-lifetime," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(1), pages 37-52, May.
    17. Goenka, Aditya & Jafarey, Saqib & Pouliot, William, 2020. "Pollution, mortality and time consistent abatement taxes," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 1-15.
    18. Raya Muttarak, 2021. "Demographic perspectives in research on global environmental change," Population Studies, Taylor & Francis Journals, vol. 75(S1), pages 77-104, December.
    19. Palivos, Theodore & Varvarigos, Dimitrios, 2017. "Pollution Abatement As A Source Of Stabilization And Long-Run Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 21(3), pages 644-676, April.
    20. Nicolas Clootens, 2017. "Public Debt, Life Expectancy, and the Environment," Post-Print hal-03533082, HAL.
    21. Marion Davin & Mouez Fodha & Thomas Seegmuller, 2023. "Environment, public debt, and epidemics," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(6), pages 1270-1303, December.
    22. Carlotta Balestra & Davide Dottori, 2012. "Aging society, health and the environment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1045-1076, July.
    23. Marion Davin & Mouez Fodha & Thomas Seegmuller, 2021. "Environment, public debt and epidemics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03222251, HAL.
    24. Armel Ngami & Thomas Seegmuller, 2021. "Pollution and growth: The role of pension in the efficiency of health and environmental policies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 17(4), pages 390-415, December.
    25. Evans, Mary F. & Smith, V. Kerry, 2005. "Do new health conditions support mortality-air pollution effects?," Journal of Environmental Economics and Management, Elsevier, vol. 50(3), pages 496-518, November.
    26. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    27. Emily Oster & Ira Shoulson & E. Ray Dorsey, 2013. "Limited Life Expectancy, Human Capital and Health Investments," American Economic Review, American Economic Association, vol. 103(5), pages 1977-2002, August.
    28. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    29. Avraham Ebenstein & Maoyong Fan & Michael Greenstone & Guojun He & Peng Yin & Maigeng Zhou, 2015. "Growth, Pollution, and Life Expectancy: China from 1991-2012," American Economic Review, American Economic Association, vol. 105(5), pages 226-231, May.
    30. Pierre-André Jouvet & Pierre Pestieau & Gregory Ponthiere, 2010. "Longevity and environmental quality in an OLG model," Journal of Economics, Springer, vol. 100(3), pages 191-216, July.
    31. Katrin Millock, 2015. "Migration and Environment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01302611, HAL.
    32. Mouez Fodha & Thomas Seegmuller, 2014. "Environmental Quality, Public Debt and Economic Development," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(4), pages 487-504, April.
    33. Chakraborty, Shankha, 2004. "Endogenous lifetime and economic growth," Journal of Economic Theory, Elsevier, vol. 116(1), pages 119-137, May.
    34. Zhang, Junsen & Zhang, Jie & Lee, Ronald, 2001. "Mortality decline and long-run economic growth," Journal of Public Economics, Elsevier, vol. 80(3), pages 485-507, June.
    35. Bloom, David E. & Canning, David & Sevilla, Jaypee, 2004. "The Effect of Health on Economic Growth: A Production Function Approach," World Development, Elsevier, vol. 32(1), pages 1-13, January.
    36. Fabio Mariani & Agustin Perez Barahona & Natacha Raffin, 2019. "Population and the environment: the role of fertility, education and life expectancy," LIDAM Discussion Papers IRES 2019008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    37. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
    38. Chen Wu, 2017. "Human capital, life expectancy, and the environment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(8), pages 885-906, November.
    39. Natacha Raffin & Thomas Seegmuller, 2014. "Longevity, pollution and growth," Post-Print hal-01385920, HAL.
    40. Marion Davin & Mouez Fodha & Thomas Seegmuller, 2021. "Environment, public debt and epidemics," AMSE Working Papers 2128, Aix-Marseille School of Economics, France.
    41. Anne Pebley, 1998. "Demography and the environment," Demography, Springer;Population Association of America (PAA), vol. 35(4), pages 377-389, November.
    42. Fabio Mariani & Agustin Perez Barahona & Natacha Raffin, 2010. "Life expectancy and the environment," Post-Print hal-00638730, HAL.
    43. Katrin Millock, 2015. "Migration and Environment," Annual Review of Resource Economics, Annual Reviews, vol. 7(1), pages 35-60, October.
    44. Marion Davin & Mouez Fodha & Thomas Seegmuller, 2021. "Environment, public debt and epidemics," AMSE Working Papers 2128, Aix-Marseille School of Economics, France.
    45. Dimitrios Varvarigos, 2013. "Environmental Dynamics And The Links Between Growth, Volatility And Mortality," Bulletin of Economic Research, Wiley Blackwell, vol. 65(4), pages 314-331, October.
    46. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 223-247, April.
    47. Katrin Millock, 2015. "Migration and Environment," Post-Print halshs-01302611, HAL.
    48. Friedl, Birgit & Getzner, Michael, 2003. "Determinants of CO2 emissions in a small open economy," Ecological Economics, Elsevier, vol. 45(1), pages 133-148, April.
    49. Andreas Schaefer & Alexia Prskawetz, 2014. "Pollution, Public Health Care, and Life Expectancy when Inequality Matters," Dynamic Modeling and Econometrics in Economics and Finance, in: Elke Moser & Willi Semmler & Gernot Tragler & Vladimir M. Veliov (ed.), Dynamic Optimization in Environmental Economics, edition 127, pages 127-154, Springer.
    50. W. Walker Hanlon & Yuan Tian, 2015. "Killer Cities: Past and Present," American Economic Review, American Economic Association, vol. 105(5), pages 570-575, May.
    51. Nicolas CLOOTENS, 2014. "Public Debt, Life Expectancy and the Environment," LEO Working Papers / DR LEO 2562, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    52. Blackburn, Keith & Cipriani, Giam Pietro, 2002. "A model of longevity, fertility and growth," Journal of Economic Dynamics and Control, Elsevier, vol. 26(2), pages 187-204, February.
    53. Mariani, Fabio & Pérez-Barahona, Agustín & Raffin, Natacha, 2010. "Life expectancy and the environment," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 798-815, April.
    54. Katrin Millock, 2015. "Migration and Environment," PSE-Ecole d'économie de Paris (Postprint) halshs-01302611, HAL.
    55. Dimitrios Varvarigos & Intan Zanariah Zakaria, 2017. "Longevity, Fertility and Economic Growth: Do Environmental Factors Matter?," Review of Development Economics, Wiley Blackwell, vol. 21(1), pages 43-66, February.
    56. repec:hal:pseose:halshs-01302611 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sichao Wei & David Aadland, 2021. "Pollution permits, green taxes, and the environmental poverty trap," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 1032-1052, May.
    2. Karine Constant, 2015. "Environmental Policy and Inequality: A Matter of Life and Death," AMSE Working Papers 1527, Aix-Marseille School of Economics, France.
    3. Carlotta Balestra & Davide Dottori, 2012. "Aging society, health and the environment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(3), pages 1045-1076, July.
    4. Constant, Karine & Davin, Marion, 2021. "Pollution, children’s health and the evolution of human capital inequality," Mathematical Social Sciences, Elsevier, vol. 112(C), pages 9-25.
    5. Constant, Karine, 2019. "Environmental policy and human capital inequality: A matter of life and death," Journal of Environmental Economics and Management, Elsevier, vol. 97(C), pages 134-157.
    6. Goenka, Aditya & Jafarey, Saqib & Pouliot, William, 2020. "Pollution, mortality and time consistent abatement taxes," Journal of Mathematical Economics, Elsevier, vol. 88(C), pages 1-15.
    7. Aditya Goenka & Saqib Jafarey & William Pouliot, 2012. "Pollution, Mortality and Optimal Environmental Policy," Discussion Papers 12-05, Department of Economics, University of Birmingham.
    8. Fabio Mariani & Agustin Perez Barahona & Natacha Raffin, 2019. "Population and the environment: the role of fertility, education and life expectancy," LIDAM Discussion Papers IRES 2019008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    9. Natacha Raffin, 2012. "Childrens environmental health, education, and economic development," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 996-1022, August.
    10. Zhao Zhang & Caoyuan Ma & Aiping Wang, 2023. "Environmental Governance, Public Health Expenditure, and Economic Growth: Analysis in an OLG Model," IJERPH, MDPI, vol. 20(4), pages 1-21, February.
    11. Nicolas CLOOTENS, 2014. "Public Debt, Life Expectancy and the Environment," LEO Working Papers / DR LEO 1824, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    12. Dao, Nguyen Thang & Edenhofer, Ottmar, 2018. "On the fiscal strategies of escaping poverty-environment traps towards sustainable growth," Journal of Macroeconomics, Elsevier, vol. 55(C), pages 253-273.
    13. Karine Constant & Natacha Raffin, 2016. "Environnement, croissance et inégalités : le rôle particulier du canal de la santé," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 9-29.
    14. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Investigating the Causal Relationships among Carbon Emissions, Economic Growth, and Life Expectancy in Turkey: Evidence from Time and Frequency Domain Causality Techniques," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    15. Natacha Raffin & Thomas Seegmuller, 2017. "The Cost of Pollution on Longevity, Welfare and Economic Stability," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 683-704, November.
    16. Pietro F. Peretto & Simone Valente, 2021. "Growth with Deadly Spillovers," University of East Anglia School of Economics Working Paper Series 2021-05, School of Economics, University of East Anglia, Norwich, UK..
    17. Aloi, Marta & Tournemaine, Frederic, 2011. "Growth effects of environmental policy when pollution affects health," Economic Modelling, Elsevier, vol. 28(4), pages 1683-1695, July.
    18. Raffin, Natacha & Seegmuller, Thomas, 2014. "Longevity, pollution and growth," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 22-33.
    19. Evangelos V. Dioikitopoulos & Sugata Ghosh & Eugenia Vella, 2016. "Technological Progress, Time Perception and Environmental Sustainability," Working Papers 2016002, The University of Sheffield, Department of Economics.
    20. Mouez Fodha & Thomas Seegmuller, 2014. "Environmental Quality, Public Debt and Economic Development," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(4), pages 487-504, April.

    More about this item

    Keywords

    Environmental quality; Pollution; Longevity; Endogenous growth; Government policy;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:tuweco:012022. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/imtuwat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.