Productivity, Environmental Quality, and Economic Development
The article aims at investigating the relationship between health, environmental quality and growth. I consider an olg model, where workers’ human capital depends on both current environmental conditions and health care expenditures. This model generates complementarity between health expenditures and environmental quality. It allows for a poverty trap characterized by a low level of both health status and environmental quality. Finally it also provides conditions for both a potential environmental collapse or environmental cycles.
Classiï¬cation JEL: H51, I0, D91.