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Social Unrest and Environmental Performance

Author

Listed:
  • Mahdi Fawaz

    (CEPN Ð USPN)

  • Donatella Gatti

    (CEPN Ð USPN)

Abstract

There is a growing consensus that policies such as carbon taxes are needed to improve environmental performance. We propose a theoretical framework and a model to examine how environmental concerns determine political support for carbon taxation and the incentives for the poor to revolt, replace the incumbent government, and achieve a fairer distribution of income. Our main result is that the incentive to revolt is an inverted U-shaped function of environmental performance. On the empirical side, we construct a normalized Social Unrest Index (SUI) based on riots and battles data from the ACLED database. Then, we analyze the determinants of SUI in a panel of 211 countries between 1997 and 2022 including a quadratic term of the EPI index (Yale University). We find an inverted U-shaped relationship that is robust in all the specifications tested. In autocratic regimes, as EPI rises from 30% to 40%, SUI predicted average almost doubles from 12.8% to 20.4%, while it falls at higher EPI levels. Our results have important policy implications.

Suggested Citation

  • Mahdi Fawaz & Donatella Gatti, 2025. "Social Unrest and Environmental Performance," Working Papers 2025.07, FAERE - French Association of Environmental and Resource Economists.
  • Handle: RePEc:fae:wpaper:2025.07
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    File URL: http://faere.fr/pub/WorkingPapers/Fawaz_Gatti_FAERE_WP2025.07.pdf
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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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