Arbeitspapier

Is Inequality Harmful for the Environment in a Growing Economy?

In this paper we investigate the relationship between inequality and the environment in a growing economy from a political economy perspective. We consider an endogenous growth economy, where growth generates pollution and a deterioration of the environment. Public expenditures may either be devoted to supporting growth or abating pollution. The decision over the public programs is done in a direct democracy, with simple majority rule. We prove that the median voter is decisive and show that inequality is harmful for the environment: the poorer the median voter relative to the average individual, the less she will tax and devote resources to the environment, preferring to support growth.

Language
Englisch

Bibliographic citation
Series: Nota di Lavoro ; No. 5.2005

Classification
Wirtschaft
Personal Income, Wealth, and Their Distributions
Macroeconomic Analyses of Economic Development
Environmental Economics: General
Environmental Economics: Government Policy
Subject
Inequality
Environment
Pollution abatement policy
Growth
Political economy
Einkommensverteilung
Umwelt
Neue Wachstumstheorie
Wachstumspolitik
Umweltpolitik
Median Voter
Theorie

Event
Geistige Schöpfung
(who)
Kempf, Hubert
Rossignol, Stéphane
Event
Veröffentlichung
(who)
Fondazione Eni Enrico Mattei (FEEM)
(where)
Milano
(when)
2005

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kempf, Hubert
  • Rossignol, Stéphane
  • Fondazione Eni Enrico Mattei (FEEM)

Time of origin

  • 2005

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