Next Article in Journal
Incorporating the Concepts of Sharing-In and Sharing-Out in CSR: Australian Consumers’ Perspective
Previous Article in Journal
Selection Criteria for Drought-Tolerant Bread Wheat Genotypes at Seedling Stage
Open AccessArticle

The Effects of a Revenue-Neutral Child Subsidy Tax Mechanism on Growth and GHG Emissions

1
Informetrics Research Group, Ton Duc Thang University, Ho Chi Minh City 758307, Vietnam
2
Faculty of Social Sciences and Humanities, Ton Duc Thang University, Ho Chi Minh City 758307, Vietnam
3
School of Global Business & Economics, Changwon National University, Changwon 641-773, Korea
*
Author to whom correspondence should be addressed.
Sustainability 2019, 11(9), 2585; https://doi.org/10.3390/su11092585
Received: 20 March 2019 / Revised: 27 April 2019 / Accepted: 29 April 2019 / Published: 5 May 2019
Growing population, greenhouse gas emissions, and the pressure to improve economic growth are conflicting and controversial issues at the core of political economy. In this paper, using a theoretical model, we show that by shifting relative costs of child-rearing and costs for education, we can achieve a slowdown in population growth and greenhouse emissions, and an enhancement of economic growth. These goals are based on two fundamental considerations—the quantity–quality tradeoff with respect to the choice of the number, and the educational level of children. An analysis is presented using a standard overlapping generation (OLG) framework that is extended with human capital, endogenous fertility, and changing life expectancy. The environmental impact of economic activities is modeled using a modified IPAT framework. Our results show that it is possible to reduce the level of carbon emissions of the whole economy and to generate a Pareto improvement. Subsequently, an economic strategy is presented that is costless, has various advantages, and particularly useful for countries experiencing high fertility rate that are not sustainable. View Full-Text
Keywords: family policy; climate change; OLG model; fertility; human capital; educational subsidy family policy; climate change; OLG model; fertility; human capital; educational subsidy
Show Figures

Figure 1

MDPI and ACS Style

Kumar, R.R.; Stauvermann, P.J. The Effects of a Revenue-Neutral Child Subsidy Tax Mechanism on Growth and GHG Emissions. Sustainability 2019, 11, 2585.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop