ISSN:
1572-9338
Keywords:
Evaluation of national product
;
health environment
;
JEL C82
;
131
;
Q28
Source:
Springer Online Journal Archives 1860-2000
Topics:
Mathematics
,
Economics
Notes:
Abstract An important issue in environmental economics is to augment the conventional net national product measure so as to cover changes in stocks of natural resources. In this paper, we show how to treat health (capital) effects in welfare measures caused by, for example, pollution. We also show the effects the risk of “doomsday” caused by pollution has on these measures. A Ramsey growth model enlarged with health capital and death risks is used to derive an augmented welfare measure. A way of solving the particular technical problem one faces when the death risk depends on a state variable (health capital) is also presented. This measure is contrasted with the conventional net national product measure. We also briefly discuss the welfare properties of a market economy when individuals invest in health capital but face a strictly positive death risk.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF02031734
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