TY  - RPRT
        AU  - Lehmijoki, Ulla
AU  - Palokangas, Tapio K.
        TI  - Fertility, Mortality and Environmental Policy
        PY  - 2016/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10465
        UR  - https://www.iza.org/index.php/publications/dp10465
        AB  - This article examines pollution and environmental mortality in an economy where fertility is endogenous and output is produced from labor and capital by two sectors, dirty and clean. An emission tax curbs dirty production, which decreases pollution-induced mortality but also shifts resources to the clean sector. If the dirty sector is more capital intensive, then this shift increases labor demand and wages. This, in turn, raises the opportunity cost of rearing a child, thereby decreasing fertility and the population size. Correspondingly, if the clean sector is more capital intensive, then the emission tax decreases the wage and increases fertility. Although the proportion of the dirty sector in production falls, the expansion of population boosts total pollution, aggravating mortality.
        KW  - environmental mortality
KW  - pollution tax
KW  - population growth
KW  - two-sector models
        ER  -