Effects of Environmental Education Investment about Exhaustible Resource Consumption Problem

An Environmental Tax as Financial Resource

Abstract

In this paper, we constructed a model which an environmental tax was introduced as financial resource of environmental education investment. And, the effects of environmental education on consuming an exhaustible resource of the individual who has presented-biased preference were analyzed. As a result, it was shown that the exhaustible resource stock declined more because it excessively consumed the exhaustible resource by the degree of the presented-biased preference large in the first stage. However, introduction of environmental tax held down the overconsumption. Also, we clarified trade-off between the improving effect of social welfare by changing human behavior and the decreasing effect of social welfare by cutting income. Moreover, the difference of exhaustible consumption at the present period and the future period was reduced by introducing the tax for environmental education when we thought about each generation.