Life expectancy and the environment

Journal article: We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental care, depending on how much they expect to live. In turn, environmental conditions affect life expectancy. As a result, our model produces a positive correlation between longevity and environmental quality, both in the long-run and along the transition path. Eventually, multiple equilibria may also arise: some countries might be caught in a low-life-expectancy/low-environmental-quality trap. This outcome is consistent with stylized facts relating life expectancy and environmental performance measures. We also discuss the welfare and policy implications of the inter-generational externalities generated by individual choices. Finally, we show that our results are robust to the introduction of growth dynamics based on physical or human capital accumulation.

Author(s)

Fabio Mariani, Agustin Perez Barahona, Natacha Raffin

Journal
  • Journal of Economic Dynamics and Control
Date of publication
  • 2010
Keywords
  • ENVIRONMENTAL QUALITY
  • LIFE EXPECTANCY
  • POVERTY TRAPS
  • HUMAN CAPITAL
  • PARTICULATE AIR POLLUTION
  • ECONOMIC GROWTH
  • ADULT MORTALITY
  • EASTERN EUROPE
  • HUMAN HEALTH
  • EXPOSURE
  • ECOSYSTEMS
  • MODEL
  • TRAPPE A PAUVRETE
Pages
  • 798-815
Version
  • 1
Volume
  • 34