Is inequality harmful for the environment in a growing economy ?
Hubert Kempf () and
Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)
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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Journal Article: IS INEQUALITY HARMFUL FOR THE ENVIRONMENT IN A GROWING ECONOMY? (2007)
Working Paper: Is inequality harmful for the environment in a growing economy ? (2006)
Working Paper: Is Inequality Harmful for the Environment in a Growing Economy? (2005)
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Persistent link: /RePEc:mse:wpsorb:v06045
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