There have been opposing conclusions in the literature as to whether lender liability increases the probability of environmentally harmful accidents. This paper shows that s multiplicity of equilibria is the key to solve such contradictory conclusions.

In this paper, we analyze the effects of population aging on economic growth and the environment in a two-period overlapping generations model of growth, aging, and the environment. We show that aging may be beneficial to economic growth and the environment under perfect annuitisation, while...