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Relief for the Environment? The Importance of an Increasingly Unimportant Industrial Sector

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  • Martin Gassebner
  • Noel Gaston
  • Michael J. Lamla

Abstract

Deindustrialisation, stagnant real incomes of production workers and increasing inequality are latter-day features of many economies. It's common to assume that such developments pressure policy-makers to relax environmental standards. However, when heavily polluting industries become less important economically, their political importance also tends to diminish. Consequently, a regulator may increase the stringency of environmental policies. Like some other studies, we find that declining industrial employment translates into stricter environmental standards. In contrast to previous studies, but consistent with our argument, we find that greater income inequality is associated with policies that promote a cleaner environment.

Suggested Citation

  • Martin Gassebner & Noel Gaston & Michael J. Lamla, 2006. "Relief for the Environment? The Importance of an Increasingly Unimportant Industrial Sector," KOF Working papers 06-130, KOF Swiss Economic Institute, ETH Zurich.
  • Handle: RePEc:kof:wpskof:06-130
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    File URL: http://dx.doi.org/10.3929/ethz-a-005139293
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    Cited by:

    1. Mihai Mutascu & Aurora Murgea, 2017. "Globalization and financial performances in French cosmetic industry," Working Papers halshs-01504099, HAL.
    2. Martin Gassebner & Michael Lamla & Jan-Egbert Sturm, 2006. "Economic, demographic and political determinants of pollution reassessed," KOF Working papers 06-129, KOF Swiss Economic Institute, ETH Zurich.
    3. Shiyi Chen, 2009. "Engine or drag: Can high energy consumption and CO 2 emission drive the sustainable development of Chinese industry?," Frontiers of Economics in China, Springer;Higher Education Press, vol. 4(4), pages 548-571, December.
    4. repec:eee:ecolec:v:142:y:2017:i:c:p:249-256 is not listed on IDEAS
    5. Björn Kauder & Niklas Potrafke & Heinrich Ursprung, 2016. "Behavioral Determinants of Proclaimed Support for Environment Protection Policies," CESifo Working Paper Series 5993, CESifo Group Munich.
    6. Martin Gassebner & Michael Lamla & Jan-Egbert Sturm, 2006. "Economic, Demographic and Political Determinants of Pollution Reassessed: A Sensitivity Analysis," CESifo Working Paper Series 1699, CESifo Group Munich.
    7. Lamla, Michael J., 2009. "Long-run determinants of pollution: A robustness analysis," Ecological Economics, Elsevier, vol. 69(1), pages 135-144, November.

    More about this item

    Keywords

    Environmental regulations; Deindustrialisation; Income inequality; Extreme bounds analysis;

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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