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Altruism, Voluntary Contributions and Neutrality: The Case of Environmental Quality
Author(s) -
Jouvet PierreAndré,
Michel Philippe,
Pestieau Pierre
Publication year - 2000
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/1468-0335.00220
Subject(s) - economics , altruism (biology) , redistribution (election) , subsidy , neutrality , environmental quality , microeconomics , turnover , production (economics) , public economics , social psychology , psychology , ecology , philosophy , management , epistemology , politics , political science , law , market economy , biology
This paper develops an intertemporal model wherein production generates pollution, which is viewed by consumers as a public bad. There are two types of consumer: those who are altruistic and leave bequests to their children, and those who are pure life‐cyclers. Both types voluntarily contribute to the quality of environment through environmental groups. It appears that, if bequests by altruists and voluntary contributions by all are positive, redistribution is neutral—which does not mean that pollution abatement and capital accumulation are optimal. To achieve optimality, one needs a tax on inheritance and a differential subsidy on all consumer contributions.