It is known that when people generate externalities, a birth also generates an externality and efficiency requires a Pigou tax/subsidy on having children. The size of the externality from a birth is important for studying policy. We calculate the size of this "population externality" in a specific case: we consider a maintained hypothesis that greenhouse gas emissions are a serious problem and assume government reacts by optimally restricting emissions. Calculated population externalities are large under many assumptions (JEL D62, H23, J11, J13, Q54, Q58)
Bohn, Henning, and Charles Stuart.
"Calculation of a Population Externality."
American Economic Journal: Economic Policy,
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Demographic Trends, Macroeconomic Effects, and Forecasts
Fertility; Family Planning; Child Care; Children; Youth
Climate; Natural Disasters and Their Management; Global Warming
Environmental Economics: Government Policy