The great transition: implications from environmental policy on the quality-quantity trade-off on children

Tsoukis, Christopher

Abstract

We develop an overlapping-generations model with human capital accumulation and endogenous fertility containing a pollution externality. We study the effects of an environmental policy on individuals' quality-quantity trade-off on children. In a Malthusian poverty trap, we show that a more stringent policy induces a reduction of fertility. In a state of perpetual development, we find a similar result and show that higher environmental quality, growth and welfare are compatible goals. Moreover, we show that the policy can be used as an instrument for initiating a country's great transition from a state of poverty to a state of development.

Citation

Tsoukis, C. (2015). The great transition: implications from environmental policy on the quality-quantity trade-off on children. Singapore Economic Review, 1155-1174. https://doi.org/10.1142/S021759081550112X

• Acceptance Date: Jul 23, 2015
• Publication Date: Nov 15, 2015
• Journal: Singapore Economic Review
• Print ISSN: 0217-5908
• Publisher: World Scientific Publishing
• Pages: 1155-1174
• DOI: https://doi.org/10.1142/S021759081550112X
• Keywords: environmental policy, human capital, fertility, great transition
• Publisher URL: http://dx.doi.org/10.1142/S021759081550112X