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Is inequality harmful for the environment in a growing economy ?

Hubert Kempf () and Stéphane Rossignol

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: 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.

Keywords: Inequality; growth; environmental policy; political economy (search for similar items in EconPapers)
JEL-codes: D3 O4 Q56 Q58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 2005-09, Revised 2006-05
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ftp://mse.univ-paris1.fr/pub/mse/cahiers2006/V06045.pdf (application/pdf)

Related works:
Journal Article: IS INEQUALITY HARMFUL FOR THE ENVIRONMENT IN A GROWING ECONOMY? (2007) Downloads
Working Paper: Is inequality harmful for the environment in a growing economy ? (2006) Downloads
Working Paper: Is Inequality Harmful for the Environment in a Growing Economy? (2005) Downloads
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Persistent link: http://EconPapers.repec.org/RePEc:mse:wpsorb:v06045

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