Intergenerational dynamics of environmental consciousness and economic growth: an OLG model analysis

This paper explores the complex interactions between environmental awareness at different life stages, taxation policies, and human capital accumulation within an overlapping generations model featuring two-period-lived households. By conducting a comparative static analysis at the stable steady-state equilibrium, the study finds that higher environmental consciousness in early life promotes better long-term outcomes. In contrast, increased environmental awareness in later life and higher taxes present obstacles to capital accumulation. The research also highlights the pivotal role of human capital in enhancing environmental quality without significantly impacting physical capital.