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Agglomeration, inequality, and the environment in an R&D-based growth model

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  • Yoshihiro Hamaguchi

    (Hannan University)

Abstract

Whether inequality worsens or improves the environment is important problems because it allows us to judge if governments need to implement income redistribution policies when targeting sustainable development. This study aims to investigate the relationship between the environment, inequality, and economic growth in an R&D based growth model. Reducing grandfathered permits raises the growth rate, enhancing the home market effect. Thus, firms agglomerate across regions, and pollution and shares owned by households in one region overshadow the other. These results increase income inequality across regions. Our findings suggest that bias via leisure reduces the statistical significance of the pollution havens hypothesis.

Suggested Citation

  • Yoshihiro Hamaguchi, 2025. "Agglomeration, inequality, and the environment in an R&D-based growth model," Letters in Spatial and Resource Sciences, Springer, vol. 18(1), pages 1-17, December.
    • Handle: RePEc:spr:lsprsc:v:18:y:2025:i:1:d:10.1007_s12076-025-00413-2
    DOI: 10.1007/s12076-025-00413-2
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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F18 - International Economics - - Trade - - - Trade and Environment
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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