On Income Inequality and Green Preferences
We derive conditions on individual preferences and technology that give rise to a negative correlation between income inequality and environmental protection. We present a class of models (which captures a static model as well as an overlapping-generations model) in which individuals differ in earning abilities, and where a majority elected representative takes decisions over a pollution tax and a redistributive tax. We show that, if private consumption goods and the environment are non-inferior goods, then if the decisive individual has lower ability than the average, she will prefer a higher redistributive tax and a lower pollution tax.
|Date of creation:||Oct 2002|
|Contact details of provider:|| Postal: University of Rochester, Wallis Institute, Harkness 109B Rochester, New York 14627 U.S.A.|
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- Timothy Besley & Stephen Coate, 1997.
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- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
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