A note on environment-dependent time preferences

Hsun Chu, Ching Chong Lai, Chih Hsing Liao

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

In this paper we investigate the growth effect of environmental taxes when time preference is endogenously determined by environmental quality. We find that if people become more patient because of a cleaner environment, raising the environmental tax may reduce pollution and stimulate growth. Moreover, the Pigouvian principle may be inefficient in the presence of endogenous time preference.

Original languageEnglish
Pages (from-to)1652-1667
Number of pages16
JournalMacroeconomic Dynamics
Volume20
Issue number6
DOIs
StatePublished - 1 Sep 2016

Keywords

  • Endogenous Growth
  • Endogenous Time Preference
  • Pigouvian Tax

Fingerprint

Dive into the research topics of 'A note on environment-dependent time preferences'. Together they form a unique fingerprint.

Cite this