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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/13158 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/13158 http://eprints.org/relation/isCoversheetVersionOf https://pure.iiasa.ac.at/id/document/13158 archive 351 disk0/00/00/84/34 2016-01-15 08:40:31 2021-08-27 17:20:12 2016-01-15 08:40:31 monograph show 2 Lehmijoki U. Rovenskaya E. 8206 0000-0002-2761-3443 pub iis_mod prog_dyn Optimal growth; Optimal pollution; Sustainable development; Calibrations; Europe There is emerging evidence that environmental degradation increases human mortality. This paper provides a long-run consumer maximization model where population growth is endogenous to emissions that are generated in production. There is a trade-off between consumption and population growth; large consumption calls for large production, thus leading to high environmental mortality and low population growth. It may be optimal to end up with negative population growth implying that demographic sustainability fails as consumption increases excessively. We provide a theoretical model and suggest its calibrated version using European air pollution data. Our exercise illustrates the functioning of the theoretical model and discusses related methodological problems. Journal of Economic Literature: Q01, Q53, Q54, J11 2007-09 published IR-07-023 IR-07-023 260 public interim_report IIASA, Laxenburg, Austria 30 FALSE info:eu-repo/semantics/book