Time,affluence and pollution in the theory of consumer's behavior

This paper extends Becker's analysis on the allocation of time to provide a theoretical basis for the phrase “affluence breeds effluence.” Many environmentalists fear that a pollutant tax is merely a license to pollute. Their fears are well-founded if we consider the effect of increased affluence of the society on the pollutant stock. Assuming that relatively pollutant intensive “commodities” are also relatively less time intensive, an assumption applicable to most of the affluent societies, it is shown that the pollutant tax policy will be ineffective if the effect of increased wage rate on pollutant stock is ignored in spite of the efficiency of such a tax as a policy tool.