Transboundary Pollution, Population Migration, and Fertility

Both environmental and population problems are major issues that result in the extinction or collapse of societies, economies, and nations. Additionally, transboundary pollution affects the efficient allocation of human and physical resources among regions. Using economic growth theory’s framework, several macroeconomic studies have focused on the compatibility of environmental protection and sustainable economic growth; by contrast, a few studies have highlighted the effects of transboundary pollution on population mobility and capital accumulation. Therefore, we construct a two-region overlapping generations model, wherein the environment interacts with economic activity in the presence of transboundary pollution. This model analyzes the impact of transboundary pollution caused by production in one region on population distribution between two regions, alongside regional and total fertility. Increasing transboundary pollution, the population tends to concentrate more in the pollution source region. Moreover, an increase in the rate of transboundary pollution can decrease total fertility rate.