An endogenous growth model with human capital formation, pollution caused by production of consumption goods, and … longer neutral, either revenue from a pollution tax must be redistributed to dynasties (working as an implicit tax on child … distortions of the fertility decisions by maintaining an appropriate public debt. When abatement is highly productive, it can be …

environment, (ii) increasing returns in abatement giving rise to an EKC and (iii) sustained growth resulting from a linear final … potential explana- tion of an N-shaped pollution-income relation. Finally, it is shown that the model is compatible with most …

pollution. This can make the growth-survival relationship convex over some region and lead to two non-trivial steady states …, with one a poverty trap. Uniform abatement taxes can cause the poverty trap to widen while increasing incomes at the high … steady state. We also study the properties and dynamics of an optimal second-best abatement tax. It is non-homogeneous and …

pollution. This can make the growth-survival relationship convex over some region and lead to two non-trivial steady states …, with one is a poverty trap. Uniform abatement taxes can cause the poverty trap to widen while increasing incomes at the … high steady state. We also show that the optimal second-best abatement tax is non-homogeneous and increasing in the capital …