IS INEQUALITY HARMFUL FOR THE ENVIRONMENT IN A GROWING ECONOMY?

Hubert Kempf () and Stéphane Rossignol

Economics and Politics, 2007, vol. 19, issue 1, 53-71

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 made 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.

Date: 2007
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https://doi.org/10.1111/j.1468-0343.2007.00302.x

Related works:
Working Paper: Is Inequality Harmful for the Environment in a Growing Economy? (2007)
Working Paper: 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? (2006)
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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