Can Education Policy Promote Environmental Quality: An Overlapping Generations Model

Education is a crucial aspect of the worldwide reaction to climate change. It aids younger generation realize and approach effect global warming, inspires changes in their points view comportment them adjust change-similar tendency. This paper develops two-period overlapping-generations model featuring taxing revenues finance education environmental externalities, studies how an uniform tax rate on both labour income interests savings, affects capital accumulation quality environment. How does public spending affect environment? We analyze this question by studying comparative static analysis at stable steady state equilibrium. Under framework, results show that leads from one hand decreasing other has depends share human production. In particular, there critical proportion equal 0,14 above which influence negatively environment, below reacts inversely with positive impact