Environmental Abatement and Intergenerational Distribution

A.L. Bovenberg, B.J. Heijdra

Research output: Working paperDiscussion paperOther research output

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Abstract

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
PublisherMacroeconomics
Number of pages44
Volume1998-100
Publication statusPublished - 1998

Publication series

NameCentER Discussion Paper
Volume1998-100

Fingerprint

Intergenerational distribution
Abatement
Debt policy
Private investment
Overlapping generations model
Natural capital
Welfare gains
Public debt
Crowd-out

Keywords

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

Cite this

Bovenberg, A. L., & Heijdra, B. J. (1998). Environmental Abatement and Intergenerational Distribution. (CentER Discussion Paper; Vol. 1998-100). Tilburg: Macroeconomics.
Bovenberg, A.L. ; Heijdra, B.J. / Environmental Abatement and Intergenerational Distribution. Tilburg : Macroeconomics, 1998. (CentER Discussion Paper).
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Bovenberg, AL & Heijdra, BJ 1998 'Environmental Abatement and Intergenerational Distribution' CentER Discussion Paper, vol. 1998-100, Macroeconomics, Tilburg.

Environmental Abatement and Intergenerational Distribution. / Bovenberg, A.L.; Heijdra, B.J.

Tilburg : Macroeconomics, 1998. (CentER Discussion Paper; Vol. 1998-100).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Environmental Abatement and Intergenerational Distribution

AU - Bovenberg, A.L.

AU - Heijdra, B.J.

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N2 - 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.

AB - 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.

KW - overlapping generations

KW - public environmental abatement

KW - intergenerational welfare effects

KW - debt policy

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BT - Environmental Abatement and Intergenerational Distribution

PB - Macroeconomics

CY - Tilburg

ER -

Bovenberg AL, Heijdra BJ. Environmental Abatement and Intergenerational Distribution. Tilburg: Macroeconomics. 1998. (CentER Discussion Paper).