中文 | English

能源安全与国家发展研究中心

王敏:Optimal Health and Environmental Policies in a Pollution-Growth Nexus



 发布日期:2012-10-18 16:01:00 来源:本站         

CCED工作论文系列                                                                               No.20130304

 

 

CCED Working Paper Series

 

 

 

Optimal Health and Environmental Policies

 

in a Pollution-Growth Nexus

 

 

Min Wang, Jinhua Zhao and Joydeep Bhattacharya  


 

Abstract
This paper shows how policies aimed at insuring health risks and those intended to improve the environment are (and should be) deeply intertwined. In the model economy, inspired by recent Chinese experience, pollution raises the likelihood of poor health in the future prompting agents to self insure against anticipated, rising medical expenses. The increased saving generates more capital while capital use by firms generates more pollution. Along the transition, such a pollution-growth nexus may be attractive from a capital-accumulation perspective; however, rising pollution, via the health channel, definitely hurts welfare. Availability of private health insurance to top up pay-as-you-go coverage of medical bills together with a Pigouvian tax on emissions can replicate the first best.

 

 Optimal Health and Environmental Policies in a Pollution-Growth Nexus.pdf