Is inequality harmful for the environment in a growing economy ?
AbstractIn this paper we investigate the relationship between inequality and the environment in a growing economy from a political economy perspective. We consider an endogenous growth economy, where growth generates pollution and a deterioration of the environment. Public expenditures may either be devoted to supporting growth or abating pollution. The decision over the public programs is done in a direct democracy, with simple majority rule. We prove that the median voter is decisive and show that inequality is harmful for the environment : the poorer the median voter relative to the average individual, the less she will tax and devote resources to the environment, preferring to support growth.
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Date of creation: May 2006
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Inequality; growth; environmental policy; political economy.;
Other versions of this item:
- Hubert Kempf & St�Phane Rossignol, 2007. "Is Inequality Harmful For The Environment In A Growing Economy?," Economics and Politics, Wiley Blackwell, vol. 19(1), pages 53-71, 03.
- Hubert Kempf & stéphane Rossignol, 2005. "Is inequality harmful for the environment in a growing economy ?," Cahiers de la Maison des Sciences Economiques v06045, Université Panthéon-Sorbonne (Paris 1), revised May 2006.
- Hubert Kempf & Stéphane Rossignol, 2005. "Is Inequality Harmful for the Environment in a Growing Economy?," Working Papers 2005.5, Fondazione Eni Enrico Mattei.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
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