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Protecting Natural and Social Resources: A political economy approach

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  • Donatella Gatti

    (Université Sorbonne Paris Nord)

Abstract

This paper studies the set-up (following a voting process) of institutional arrangements related to the protection of natural and social resources in a context of inequalities and environmental challenges. To analyze how institutional and legislative protection arises, three socioeconomic groups are considered: the educated bourgeoisie, the working classes and the fiÂ…nancial elite. Groups are differentiated according to the following divides. Individuals belonging to the fiÂ…nancial elite only rely on capital incomes: they invest on Â…firms running either polluting or non-polluting activities. Individuals belonging to the first two groups are differentiated on the following levels: the demand for redistribution (from the working class) and the claims for environment-friendly legislation in relation with clean transport means (by the educated bourgeoisie). We study the institutional framework chosen by individuals under different assumptions concerning the political vote: disjoint majority versus coalition voting. The main result is that -in reaction to the Â…financial elite being the unique winner of the disjoint majority vote- a peopleÂ’s green coalition can emerge, whose redistributive and green choices run against the preferences of the Â…financial elite. This leads to the “greening” of the fiÂ…nancial elite, which in turn isolates the working classes in the political arena.

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  • Donatella Gatti, 2021. "Protecting Natural and Social Resources: A political economy approach," Working Papers 2021.10, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2021.10
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    References listed on IDEAS

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    1. Bruno Amable & Donatella Gatti, 2004. "Product market competition, job security, and aggregate employment," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 667-686, October.
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    5. Donatella Gatti & Christophe Rault & Anne-Gael Vaubourg, 2012. "Unemployment and finance: how do financial and labour market factors interact?," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 464-489, July.
    6. Donatella Gatti, 2021. "Protection of natural and social resources. A political economy approach," Working Papers REM 2021/0195, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
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    1. Gatti, Donatella, 2022. "Going green and (un)equal ? Political coalitions, redistribution, and the environment," Economic Modelling, Elsevier, vol. 116(C).

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    More about this item

    Keywords

    Institutions; political choice; redistribution; green legislation;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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