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This article challenges the conventional result that a tighter environmental tax has no long-run effect on human capital accumulation in the presence of pollution arising from final output production. It demonstrates that the technology used in the abatement sector determines the existence and...
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steady-state growth rate and lifetime welfare, whatever the source of pollution. We also demonstrate that labor supply … elasticity plays a crucial role in the marginal impact of the environmental tax on growth and welfare. When the positive …
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of the environmental tax. We also demonstrate that the link between the environmental tax and the lifetime welfare is …
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