Intergenerational Altruism and the Environment.

This paper constructs an overlapping generations model of pollution externality wherein 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 prove that it can be decentralised.

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Year of publication:	1999
Authors:	Jouvet, P.-A. ; Michel, P. ; Vidal, J.-P.
Institutions:	Groupement de Recherche en Économie Quantitative d'Aix-Marseille (GREQAM), Aix-Marseille School of Economics (AMSE)
Subject:	ENVIRONMENT \| EXTERNALITIES \| GENERATIONS

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Series:	G.R.E.Q.A.M..
Type of publication:	Book / Working Paper
Notes:	22 pages
Classification:	D62 - Externalities ; D64 - Altruism ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005669419