Why can an environmental policy tax promote growth through the channel of education?

Grimaud, André and Tournemaine, Frédéric (2006) Why can an environmental policy tax promote growth through the channel of education? IDEI Working Paper, n. 676

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Official URL: http://tse-fr.eu/pub/24558

Abstract

This paper examines the implications of an environmental policy for growth performances. We develop a model where growth is driven by human capital accumulation. Firms invest in research to develop new technologies to reduce their pollution emissions and education is treated as product which not only enhances the productivity of individuals but also enters in their preferences. We find that a tighter environmental policy can promote growth. The reason is that a higher tax on pollution drives the prices of goods whose production is polluting up. This, in turn, enhances the willingness of individuals to acquire education.

Item Type: Monograph (Working Paper)
Language: English
Date: November 2006
JEL codes: O31 - Innovation and Invention - Processes and Incentives
O34 - Intellectual Property Rights - National and International Issues
O41 - One, Two, and Multisector Growth Models
Q28 - Government Policy
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 09 Jul 2014 17:19
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:24558
URI: http://publications.ut-capitole.fr/id/eprint/15135

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