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A cultural model of private provision and the environment

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  • Bezin, Emeline
Abstract
This paper analyses an overlapping generations model of environmental externalities and capital accumulation where private contributions to environmental quality are motivated by a desire to socialize others into environmental attitudes. In this framework, the formation of environmental preferences is the result of a cultural transmission process depending on the extent of private contributions. In the short run, we show that three equilibria may arise: a first one where all green agents contribute to the environment, a second one where nobody contributes to the environment and a third interior one. We show that the capital-accumulation process and the change in preferences that occur in this economy lead the interior equilibrium to be selected, in which some, but not all, green agents contribute to the environment. The model thus provides an economic rationale for the gap between the number of people who care about the environment and the number who adopt pro-environmental behaviours. We also show that the fraction of contributors rises with capital, so that we explain the negative relationship between this gap and country income. Last, we show that this gap is particularly detrimental for welfare, and analyse the impact of a number of public policies.

Suggested Citation

  • Bezin, Emeline, 2015. "A cultural model of private provision and the environment," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 109-124.
    • Handle: RePEc:eee:jeeman:v:71:y:2015:i:c:p:109-124
    DOI: 10.1016/j.jeem.2015.02.001
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    Cited by:

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    2. Varvarigos, Dimitrios, 2023. "Cultural persistence in corruption, economic growth, and the environment," Journal of Economic Dynamics and Control, Elsevier, vol. 147(C).
    3. Paolo Melindi-Ghidi & Tom Dedeurwaerdere & Giorgio Fabbri, 2017. "Building Bridges for the Adoption of Deep Green Agri-environment Measures: The Emergence of Environmental Knowledge Brokers," EconomiX Working Papers 2017-48, University of Paris Nanterre, EconomiX.
    4. Ambec, Stefan & De Donder, Philippe, 2022. "Environmental policy with green consumerism," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    5. Timothy Besley & Torsten Persson, 2019. "JEEA-FBBVA LECTURE 2017: The Dynamics of Environmental Politics and Values," Journal of the European Economic Association, European Economic Association, vol. 17(4), pages 993-1024.
    6. Mattauch, Linus & Hepburn, Cameron & Spuler, Fiona & Stern, Nicholas, 2022. "The economics of climate change with endogenous preferences," Resource and Energy Economics, Elsevier, vol. 69(C).
    7. Ying-jie Song & Fu-wei Ma & Jing-ya Qu, 2020. "Impacts of Cultural Diversity on Carbon Emission Effects: From the Perspective of Environmental Regulations," IJERPH, MDPI, vol. 17(17), pages 1-13, August.
    8. Emeline Bezin, 2019. "The economics of Green consumption, cultural transmission and sustainable technological change," PSE-Ecole d'économie de Paris (Postprint) halshs-02087970, HAL.
    9. Bezin, Emeline & Ponthière, Gregory, 2019. "The tragedy of the commons and socialization: Theory and policy," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    10. Filippini, Massimo & Wekhof, Tobias, 2021. "The effect of culture on energy efficient vehicle ownership," Journal of Environmental Economics and Management, Elsevier, vol. 105(C).
    11. Bezin, Emeline, 2019. "The economics of green consumption, cultural transmission and sustainable technological change," Journal of Economic Theory, Elsevier, vol. 181(C), pages 497-546.
    12. Emeline Bezin, 2019. "The economics of Green consumption, cultural transmission and sustainable technological change," Post-Print halshs-02087970, HAL.

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    More about this item

    Keywords

    Private provision; Environmental quality; Overlapping generations; Cultural transmission; Growth;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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