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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/85996 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/85996 http://eprints.org/relation/isIndexCodesVersionOf https://pure.iiasa.ac.at/id/document/85996 archive 353 disk0/00/01/56/40 2018-12-17 07:06:54 2021-08-27 17:31:11 2018-12-17 07:06:54 article show Palokangas T. 8295 pub prog_asa emissions; population growth; two-sector models; optimal taxation Output is produced from labor and capital by technologies that differ in their emission intensity and relative capital intensity. Aggregate emissions decrease every individual’s health, but each individual can invest its own health. Population grows by the difference of fertility and exogenous mortality. Labor is used in production or child rearing. I construct a differential game where the benevolent government is a leader that determines taxes and subsidies, while the representative family is a follower that saves in capital and decides on its number of children. The main results are as follows. Without government intervention, population increases or decreases indefinitely. Capital should be taxed, if dirty technology, and subsidized, if clean technology is relatively capital intensive. Child rearing should be taxed, if dirty technology is relatively capital intensive or mildly labor intensive. 2018-12-14 published Elsevier 10.1016/j.ifacol.2018.11.357 224 public IFAC-PapersOnLine 51 32 79-83 TRUE 2405-8963 FALSE no info:eu-repo/semantics/article