Environment policy is a crucial part of social policy. The problems involved can be solved only if all act in unison and in close international coordination. A progressive environment policy must comprise all the planning and defensive measures required to safeguard the environment.

We present an OLG model in which life expectancy and environmental quality dynamics are jointly determined. Agents may invest in environmental care, depending on how much they expect to live. In turn, environmental conditions affect life expectancy. As a result, our model produces a positive...