Mercredi | 2014-05-28
The objective of the present paper is to give some policy recommendations to improve environmental quality in a context of debt consolidation. For that purpose, we develop an overlapping generation model in which we include public debt and we modelize the two-way causality between life expectancy and the environment. We find that a voluntarist environmental policy may allow a country to escape the environmental poverty trap, or may help a country to reach a higher level of development. We find finally that the public debt is an useful instrument that needs to be used with caution.