Environmental Abatement and Intergenerational Distribution

A.L. Bovenberg, B.J. Heijdra

Research output: Working paperDiscussion paperOther research output

355 Downloads (Pure)


This paper employs an overlapping generations model to explore the impact of public abatement on private investment and the intergenerational distribution of welfare. Whereas public abatement benefits old generations in terms of non-environmental welfare, future generations gain most in terms of environmental welfare. The overall benefits tend to be smallest for generations born at the time of the unanticipated policy shock. Public debt policy, however, can be employed to ensure that welfare gains are distributed more equally across the various generations. Such a policy implies that natural capital crowds out man-made capital.
Original languageEnglish
Place of PublicationTilburg
Number of pages44
Publication statusPublished - 1998

Publication series

NameCentER Discussion Paper


  • overlapping generations
  • public environmental abatement
  • intergenerational welfare effects
  • debt policy


Dive into the research topics of 'Environmental Abatement and Intergenerational Distribution'. Together they form a unique fingerprint.

Cite this