Publication Details

Marsiglio, S. (2017). A simple endogenous growth model with endogenous fertility and environmental concern. Scottish Journal of Political Economy, 64 (3), 263-282.


We analyze the implications of endogenous fertility choices on both economic and environmental performances in a stylized AK-type growth model. Differently from what traditionally assumed in the growth and environment literature, we allow pollution to be not only a by-product of productive activities by firms but also a result of households' behavior, as suggested by the celebrated IPAT equation. We show that along the balanced growth path equilibrium, economic growth may be non-monotonically related to the population growth rate as agents care for the environment; moreover, demographic policies can be used both to achieve win-win outcomes (simultaneously fostering economic growth and improving environmental quality) and to stabilize the otherwise non-monotonic economic and population growth relationship.

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