Intergenerational Dynamics of Environmental Quality: The Role of Cultural Transmission, Education, and Policy Interventions in an OLG Framework

Abstract This study explores the interplay between behavioral heterogeneity, cultural transmission, and environmental policy within an overlapping generations framework to address sustainability challenges. The model incorporates behavioral heterogeneity, intergenerational awareness dynamics, and the trade-offs between consumption and education investment. Numerical simulations highlight three key findings. First, in the absence of policy intervention, environmental quality and awareness converge to low steady states, leading to a “low-sustainability trap.” Second, balanced policy mixes – combining pollution taxation with sustained education investment – are more effective than isolated instruments in fostering long-run sustainability. Third, cultural transmission plays a critical role: stronger intergenerational awareness transfer reduces the policy effort required to stabilize the system. The results carry practical implications for both advanced and emerging economies, suggesting that context-specific policy design, intergenerational education strategies, and cultural reinforcement mechanisms are essential to achieving durable environmental outcomes.