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2005 Fiscal Year Final Research Report Summary

Policy Designs for Environmental Quality and Fertility

Research Project

Project/Area Number 16530215
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeSingle-year Grants
Section一般
Research Field Public finance/Monetary economics
Research InstitutionShimonoseki City University

Principal Investigator

SATO Takashi  Shimonoseki City University, Department of Economics, Associate Professor, 経済学部, 助教授 (90235359)

Co-Investigator(Kenkyū-buntansha) KAMADA Kimiyoshi  Chukyo University, Department of Economics, Professor, 経済学部, 教授 (50224647)
Project Period (FY) 2004 – 2005
KeywordsPollution Externality / Environmental Quality / Fertility / Altruism / Social Optimum / Optimal Policy / Bequest
Research Abstract

We investigate the interaction between environmental quality and fertility in an altruistic bequest model with pollution externalities created by the aggregate production. The altruistic parents choose the number of children and leave bequests to their children without taking into account the effects of their decisions on production and thus on pollution.
We show that, despite the externality related to the endogenous child-bearing decisions, the parents may choose to have fewer children in the competitive economy than in the social optimum. Even in such a situation, however, the government needs to impose positive taxes on childbearing as well as on inheritance to achieve optimality.

URL: 

Published: 2007-12-13  

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