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Fiscal policy, income distribution and growth with environmental restrictions


  • Oscar Alfranca
  • Miguel-Angel Galindo


The main objective of this paper is to explain the effects of income inequality on growth, when the environment is an important social and economic issue. A model is presented in which the effects of fiscal policy on CO2 emissions, employment, income distribution and economic growth are tested with an empirical panel data model for OECD countries. In the paper, the impact of environmental fiscal policy on growth will be estimated and also the interaction of environmental fiscal policies with social and income-distribution policies. The econometric panel data model is proposed and fitted to annual data for European Union countries, 1969–2001.

Suggested Citation

  • Oscar Alfranca & Miguel-Angel Galindo, 2006. "Fiscal policy, income distribution and growth with environmental restrictions," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 1(3), pages 233-243.
  • Handle: RePEc:ids:ijpubp:v:1:y:2006:i:3:p:233-243

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