This paper studies an overlapping generations model with selfish agents, natural resources and human capital externalities. The initial result is to quantify the economic effects of intergenerational transfers by comparing a complete mar-kets allocation with transfers to an allocation without transfers due to in-complete markets. The core contribution is then to show that a higher resource regeneration rate boosts the effect of transfers on economic growth for both al-locations, although it also implies a higher gap in growth performances between them. Finally, it is shown that transfers can be financed through a constant lump-sum tax relative to the output level.
