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Will the Developing World’s Growing Middle Class Support Low Carbon Policies?

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  • Matthew E. Kahn
  • Somik Lall

Abstract

As billions of people in the developing world seek to increase their living standards, their aspirations pose a challenge to global efforts to cut greenhouse gas emissions. The emerging middle class are buying and operating energy intensive durables ranging from vehicles to air conditioners to computers. Owners of these durables represent an interest group with a stake in opposing carbon pricing. The political economy of encouraging middle class support for carbon pricing hinges on offsetting its perceived negative income effects. Rising environmentalism in the developing world could also increase support for credible GHG reduction policy. We quantify these effects as we estimate Engel curves of durables ownership, compare the grid’s carbon intensity by nation and study the demographic correlates of support for prioritizing environmental protection.

Suggested Citation

  • Matthew E. Kahn & Somik Lall, 2022. "Will the Developing World’s Growing Middle Class Support Low Carbon Policies?," NBER Working Papers 30238, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30238
    Note: DEV EEE PE POL
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    1. repec:hal:cepnwp:hal-04158754 is not listed on IDEAS
    2. Huang, Robert & Kahn, Matthew E., 2024. "An economic analysis of United States public transit carbon emissions dynamics," Regional Science and Urban Economics, Elsevier, vol. 107(C).

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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