IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03752641.html
   My bibliography  Save this paper

Going green and (un)equal ? Political coalitions, redistribution, and the environment

Author

Listed:
  • Donatella Gatti

    (CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord)

Abstract

This paper presents a political economy model in which people express conflicting demands about equality and ecology, and coalitions emerge as political equilibria. We also examine the environmental and redistributive policies associated with such equilibria, the incentives for ecological transition, and the consequences for ex-post inequalities. For these purposes, we consider three socio-economic groups: the educated bourgeoisie (BE), the working class (CP), and the financial elite (EF). Specifically, we elaborate an original perspective on social groups’ preferences regarding environmental protection and capital-financed redistribution. Under the disjoint majority vote, this model delivers full capital protection, no redistribution, and no environmental policies. This is the best solution for the EF group. Consequently, a two-party coalition can be formed that improves the welfare of the BE and CP groups. Moreover, the coalitions’ equilibria deliver redistributive and environmental policies entailing higher incentives for the ecological transition and lower ex-post inequalities. Finally, in line with the rise of green finance, we investigate the surge of new alliances and highlight the risks of unequal ecological outcomes.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Donatella Gatti, 2022. "Going green and (un)equal ? Political coalitions, redistribution, and the environment," Post-Print hal-03752641, HAL.
    • Handle: RePEc:hal:journl:hal-03752641
    DOI: 10.1016/j.econmod.2022.105996
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Aubert, Diane & Chiroleu-Assouline, Mireille, 2019. "Environmental tax reform and income distribution with imperfect heterogeneous labour markets," European Economic Review, Elsevier, vol. 116(C), pages 60-82.
    2. Gründler, Klaus & Potrafke, Niklas, 2019. "Corruption and economic growth: New empirical evidence," European Journal of Political Economy, Elsevier, vol. 60(C).
    3. Martínez-Zarzoso, Inma & Phillips, Jennifer, 2020. "Freedom of the press, inequality and environmental policy," Environment and Development Economics, Cambridge University Press, vol. 25(6), pages 537-560, December.
    4. Vosooghi, Sareh & Caparrós, Alejandro, 2022. "Information disclosure and dynamic climate agreements: Shall the IPCC reveal it all?," European Economic Review, Elsevier, vol. 143(C).
    5. Iversen, Torben & Soskice, David, 2006. "Electoral Institutions and the Politics of Coalitions: Why Some Democracies Redistribute More Than Others," American Political Science Review, Cambridge University Press, vol. 100(2), pages 165-181, May.
    6. Lanny W. Martin & Georg Vanberg, 2020. "Coalition Government, Legislative Institutions, and Public Policy in Parliamentary Democracies," American Journal of Political Science, John Wiley & Sons, vol. 64(2), pages 325-340, April.
    7. Baek, Jungho & Gweisah, Guankerwon, 2013. "Does income inequality harm the environment?: Empirical evidence from the United States," Energy Policy, Elsevier, vol. 62(C), pages 1434-1437.
    8. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2020. "Country governance, corruption, and the likelihood of firms’ innovation," Economic Modelling, Elsevier, vol. 92(C), pages 326-338.
    9. Donatella Gatti, 2021. "Protection of natural and social resources. A political economy approach," Working Papers hal-04020163, HAL.
    10. Marco Pagano & Paolo F. Volpin, 2005. "The Political Economy of Corporate Governance," American Economic Review, American Economic Association, vol. 95(4), pages 1005-1030, September.
    11. Lesly Cassin & Paolo Melindi-Ghidi & Fabien Prieur, 2021. "The impact of income inequality on public environmental expenditure with green consumerism," Working Papers 2021.08, FAERE - French Association of Environmental and Resource Economists.
    12. Donatella Gatti, 2021. "Protecting Natural and Social Resources: A political economy approach," Working Papers 2021.10, International Network for Economic Research - INFER.
    13. Hottenrott, Hanna & Rexhäuser, Sascha & Veugelers, Reinhilde, 2016. "Organisational change and the productivity effects of green technology adoption," Resource and Energy Economics, Elsevier, vol. 43(C), pages 172-194.
    14. Simone D’Alessandro & André Cieplinski & Tiziano Distefano & Kristofer Dittmer, 2020. "Feasible alternatives to green growth," Nature Sustainability, Nature, vol. 3(4), pages 329-335, April.
    15. Michel Le Breton & Karine Van Der Straeten, 2017. "Alliances Électorales et Gouvernementales : La Contribution de la Théorie des Jeux Coopératifs à la Science Politique," Revue d'économie politique, Dalloz, vol. 127(4), pages 637-736.
    16. Mehrdad Vahabi & Philippe Batifoulier & Nicolas Da Silva, 2020. "The Political Economy of Revolution and Institutional Change: the Elite and Mass Revolutions," Revue d'économie politique, Dalloz, vol. 130(6), pages 855-889.
    17. Donatella Gatti, 2022. "What’s behind the Political Support for Green Welfare State Institutions?," Working Papers hal-03534136, HAL.
    18. Rojas-Vallejos, Jorge & Lastuka, Amy, 2020. "The income inequality and carbon emissions trade-off revisited," Energy Policy, Elsevier, vol. 139(C).
    19. Chen, Xudong & Huang, Bihong & Lin, Chin-Te, 2019. "Environmental awareness and environmental Kuznets curve," Economic Modelling, Elsevier, vol. 77(C), pages 2-11.
    20. Jason Hickel & Giorgos Kallis, 2020. "Is Green Growth Possible?," New Political Economy, Taylor & Francis Journals, vol. 25(4), pages 469-486, June.
    21. Martin Fritz & Max Koch, 2019. "Public Support for Sustainable Welfare Compared: Links between Attitudes towards Climate and Welfare Policies," Sustainability, MDPI, vol. 11(15), pages 1-15, August.
    22. Daron Acemoglu, 2007. "Equilibrium Bias of Technology," Econometrica, Econometric Society, vol. 75(5), pages 1371-1409, September.
    23. Alessandra Colombelli & Claudia Ghisetti & Francesco Quatraro, 2020. "Green technologies and firms’ market value: a micro-econometric analysis of European firms," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(3), pages 855-875.
    24. 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.
    25. Grunewald, Nicole & Klasen, Stephan & Martínez-Zarzoso, Inmaculada & Muris, Chris, 2017. "The Trade-off Between Income Inequality and Carbon Dioxide Emissions," Ecological Economics, Elsevier, vol. 142(C), pages 249-256.
    26. Sauermann, Jan & Schwaninger, Manuel & Kittel, Bernhard, 2022. "Making and breaking coalitions: Strategic sophistication and prosociality in majority decisions," European Journal of Political Economy, Elsevier, vol. 71(C).
    27. Ravallion, Martin & Heil, Mark & Jalan, Jyotsna, 2000. "Carbon Emissions and Income Inequality," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 651-669, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisco Serranito & Donatella Gatti & Gaye-Del Lo, 2023. "Unpacking the green box: Determinants of Environmental Policy Stringency in European countries," Working Papers hal-04202808, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Donatella Gatti, 2021. "Protecting Natural and Social Resources: A political economy approach," CEPN Working Papers hal-03374129, HAL.
    2. Donatella Gatti, 2021. "Protection of natural and social resources. A political economy approach," Working Papers hal-04020163, HAL.
    3. Francisco Serranito & Donatella Gatti & Gaye-Del Lo, 2023. "Unpacking the green box: Determinants of Environmental Policy Stringency in European countries," Working Papers hal-04202808, HAL.
    4. Zhang, Rui & Sharma, Rajesh & Tan, Zhixiong & Kautish, Pradeep, 2022. "Do export diversification and stock market development drive carbon intensity? The role of renewable energy solutions in top carbon emitter countries," Renewable Energy, Elsevier, vol. 185(C), pages 1318-1328.
    5. Lesly Cassin & Paolo Melindi-Ghidi & Fabien Prieur, 2021. "The impact of income inequality on public environmental expenditure with green consumerism," Working Papers 2021.08, FAERE - French Association of Environmental and Resource Economists.
    6. Shi Wang & Wen Zhang & Hua Wang & Jue Wang & Mu-Jun Jiang, 2021. "How Does Income Inequality Influence Environmental Regulation in the Context of Corruption? A Panel Threshold Analysis Based on Chinese Provincial Data," IJERPH, MDPI, vol. 18(15), pages 1-18, July.
    7. Donatella Gatti, 2022. "What’s behind the Political Support for Green Welfare State Institutions?," CEPN Working Papers hal-03534136, HAL.
    8. Wan, Guanghua & Wang, Chen & Wang, Jinxian & Zhang, Xun, 2022. "The income inequality-CO2 emissions nexus: Transmission mechanisms," Ecological Economics, Elsevier, vol. 195(C).
    9. Andersson, Fredrik N.G., 2023. "Income inequality and carbon emissions in the United States 1929–2019," Ecological Economics, Elsevier, vol. 204(PA).
    10. Nicolli, Francesco & Gilli, Marianna & Vona, Francesco, 2022. "Inequality and Climate Change: Two Problems, One Solution?," FEEM Working Papers 329340, Fondazione Eni Enrico Mattei (FEEM).
    11. Lee, Chien-Chiang & Xing, Wenwu & Lee, Chi-Chuan, 2022. "The impact of energy security on income inequality: The key role of economic development," Energy, Elsevier, vol. 248(C).
    12. Natalia Davidson & Oleg Mariev & Sophia Turkanova, 2021. "Does income inequality matter for CO2 emissions in Russian regions?," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 16(3), pages 533-551, September.
    13. Fateh Belaïd, Sabri Boubaker, Rajwane Kafrouni, 2020. "Carbon emissions, income inequality and environmental degradation: the case of Mediterranean countries," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 17(1), pages 73-102, June.
    14. Abebe Hailemariam & Ratbek Dzhumashev & Muhammad Shahbaz, 2020. "Carbon emissions, income inequality and economic development," Empirical Economics, Springer, vol. 59(3), pages 1139-1159, September.
    15. Kopp, Thomas & Nabernegg, Markus, 2022. "Inequality and Environmental Impact – Can the Two Be Reduced Jointly?," Ecological Economics, Elsevier, vol. 201(C).
    16. Baoxi Li & De Xiao, 2021. "The Impact of Income Inequality on Subjective Environmental Pollution: Individual Evidence from China," IJERPH, MDPI, vol. 18(15), pages 1-26, July.
    17. Langnel, Zechariah & Amegavi, George Babington & Donkor, Prince & Mensah, James Kwame, 2021. "Income inequality, human capital, natural resource abundance, and ecological footprint in ECOWAS member countries," Resources Policy, Elsevier, vol. 74(C).
    18. Topcu, Mert & Tugcu, Can Tansel, 2020. "The impact of renewable energy consumption on income inequality: Evidence from developed countries," Renewable Energy, Elsevier, vol. 151(C), pages 1134-1140.
    19. Dorn, Franziska & Maxand, Simone & Kneib, Thomas, 2021. "The dependence between income inequality and carbon emissions: A distributional copula analysis," University of Göttingen Working Papers in Economics 413, University of Goettingen, Department of Economics.
    20. Rojas-Vallejos, Jorge & Lastuka, Amy, 2020. "The income inequality and carbon emissions trade-off revisited," Energy Policy, Elsevier, vol. 139(C).

    More about this item

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03752641. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.