scholarly journals OUTWARD HABITS AND ENVIRONMENTAL QUALITY IN AN OVERLAPPING GENERATIONS MODEL

2021 ◽  
Vol 6 (1) ◽  
pp. 42-50
Author(s):  
Fatma Safi
Keyword(s):  
Environmental Quality ◽  
Overlapping Generations ◽  
Habit Formation ◽  
The State ◽  
Overlapping Generations Model ◽  
Consumption Decisions ◽  
Current Consumption ◽  
Consumption Activity ◽  
State Of The Environment ◽  
Average Consumption

Outward habit formation affects consumption decisions. Since consumption displays a negative environmental externality, outward habits has as well an (adverse) effect on the environment. This research paper centers around the theoretical linkage between the combination of both externalities (environmental deterioration and outward habits). The objective of this study is to examine the impacts of outward habits on the state of the environment in the context of an overlapping generations economy. In our study, environmental quality is a public good negatively affected by consumption activity and positively affected by maintenance investment. With outward habit formation, the build-up level of average past consumption in the economy at large influences the current utility of an individual consumer. Thus, individuals draw utility not only from their own level of current consumption, but also from its level relative to the average consumption in the economy. How does outward habit influence the state of the environment? We analyze this question using an overlapping generations model with outward habit and environmental quality in the utility function. In steady state equilibrium allocation, we show that whether outward habits are destructive to the environment depends on the degrees of outward habit formation and the size of the economy.

scholarly journals Like Father, Like Son: Social Network Externalities and Parent-Child Correlation in Behavior

2009 ◽  
Vol 1 (1) ◽  
pp. 124-150 ◽  
Author(s):  
Antoni Calvó-Armengol ◽  
Matthew O Jackson
Keyword(s):  
Overlapping Generations ◽  
Parental Influence ◽  
The State ◽  
Overlapping Generations Model ◽  
Social Community ◽  
Influence Model ◽  
Child Interaction ◽  
Generational Effects ◽  
Individual Decisions ◽  
Parent Child

We build an overlapping generations model where an individual sees higher returns to adopting a behavior as many neighbors adopt the behavior. We show that overlap in the state of a parent and child's neighborhood can lead to correlation in parent-child behavior independent of any parent-child interaction. Increasing the sensitivity of individual decisions to the state of their social community leads to increased parent-child correlation and less efficient (more costly) behavior on average in the society. We show this model is distinguished from a direct parental influence model, in that it predicts increased generational effects, implying residual correlation between children and grandparents after including parental information. (JEL J12, J13, Z13)

scholarly journals External Habits Formation and the Environment

2021 ◽  
Vol 67 (1) ◽  
pp. 1-12
Author(s):  
Fatma Safi
Keyword(s):  
Utility Function ◽  
Environmental Quality ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Competitive Equilibrium ◽  
Cohort Size ◽  
Overlapping Generations Model ◽  
The Impact

Abstract The present paper presents a standard overlapping generations model with external habits formation and environmental quality in the utility function. Our main objective is to study the impact of external habits on capital accumulation and environmental quality on the intertemporal competitive equilibrium. We notice that striving for status leads to environment worsening and capital increasing when the cohort size is large.

Capital accumulation when consumers are tempted by others’ consumption experience

2019 ◽  
Vol 72 (3) ◽  
pp. 804-828
Author(s):  
Jaime Alonso-Carrera ◽  
Stéphane Bouché
Keyword(s):  
Peer Effects ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Self Control ◽  
The Other ◽  
Crucial Point ◽  
Overlapping Generations Model ◽  
Consumption Experience ◽  
The Stability ◽  
Average Consumption

Abstract We analyse how the influence of peer effects on self-control affects capital accumulation. We consider an overlapping generations model where individuals are tempted to take the economy-wide average consumption as an aspiration. Consumers exhibit a preference for self-control. They face a self-control problem, and observing each other’s consumption determines the individual’s capacity to deal with this problem. We show that temptation and self-control may either increase or decrease the accumulation of capital. The crucial point would be whether or not consumers take the consumption of the individuals belonging to the other living generations as a reference in forming their aspirations. This point also crucially determines the stability properties of the equilibrium paths.

scholarly journals Subtractive versus Multiplicative Habits in Environmental Economics

2021 ◽  
Vol 27 (1) ◽  
pp. 72-90
Keyword(s):  
Steady State ◽  
Environmental Quality ◽  
Environmental Economics ◽  
Capital Accumulation ◽  
Overlapping Generations ◽  
Consumer Preferences ◽  
Stable Steady State ◽  
Static Behavior ◽  
Current Consumption ◽  
Set Up

The present paper presents overlapping generations set-up with internal habits in consumption and the presence of environmental quality in the utility function. The modeling of habits implies that the consumer preferences are influenced not only by a household’s own current consumption, but also by their personal past consumption. Our main objective is to study and compare the impacts of first subtractive second multiplicative internal habits on the environmental quality and the capital accumulation through a comparative static behavior at the stable steady state equilibrium. By changing the way the habit is specified, we have shown that introducing habit can lead to different findings regarding the capital and the environment.

scholarly journals Environmental quality assessment in Kirovsk (Murmansk Region) based on the state of Siberian spruce needles

2020 ◽  
Vol 9 (3) ◽  
pp. 10-14
Author(s):  
Evgenia Y. Aleksandrova ◽  
Alla A. Trotsenko ◽  
Lyudmila S. Kalinovskaya
Keyword(s):  
Quality Assessment ◽  
Environmental Quality ◽  
The State ◽  
Average Percentage ◽  
Siberian Spruce ◽  
Environmental Quality Assessment ◽  
Industrial Enterprises ◽  
Murmansk Region ◽  
State Of The Environment ◽  
Spruce Needles

The paper presents data on environmental quality assessment of the state of Siberian spruce needles (Picea obovata) in Kirovsk, Murmansk Region for the period autumn 2019. It is confirmed that the methods of bioindication of the environment using coniferous plants are based primarily on the study of their morphological and structural changes. It was found that the condition of Siberian spruce needles in the study area (Kirovsk, Murmansk Region) is assessed as satisfactory. The average percentage of the area of damaged plants at different sampling points ranges from 1,96 to 2,4%. With the height of the tree, the needles become more susceptible to drying out, which may be due to an increase in the age (aging) of shoots and needles, as well as the action of abiotic factors (wind, precipitation). The dependence of the average percentage of damage on height was not revealed. The main conclusion is that the state of the environment in Kirovsk, Murmansk Region is rated as good. Indicators for assessing the state of the environment in the study areas differ slightly. The obtained data can be used for monitoring the environment of various districts of the Murmansk Region and other areas of Northern latitudes, for making a plan of environmental measures and environmental monitoring of various industrial enterprises of the Murmansk Region.

Sign in / Sign up

Export Citation Format

Share Document