Intergenerational Altruism and the Environment |
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| Authors: | Pierre-Andre Jouvet,Philippe Michel,& Jean-Pierre Vidal |
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| Affiliation: | GREQAM and GREMARS, Universite de Lille III, France,;GREQAM, Universite d'Aix-Marseille II, France,;GREQAM-CNRS, France |
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| Abstract: | We construct an overlapping generations model of pollution externality in which individuals are altruistically linked to their offspring as in Barro (1974). It is shown that steady-state consumption may be a decreasing function of the intergenerational degree of altruism. Despite individuals' altruism, the competitive equilibrium is not optimal. We thus study the social optimum and show that it can be decentralized.
JEL classification: D 62; D 64; D 91 |
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| Keywords: | Altruism environment overlapping generations |
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