Agglomeration, inequality, and the environment in an R&D-based growth model

Yoshihiro Hamaguchi ()
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Yoshihiro Hamaguchi: Hannan University

Letters in Spatial and Resource Sciences, 2025, vol. 18, issue 1, No 21, 17 pages

Abstract: Abstract Whether inequality worsens or improves the environment is important problems because it allows us to judge if governments need to implement income redistribution policies when targeting sustainable development. This study aims to investigate the relationship between the environment, inequality, and economic growth in an R&D based growth model. Reducing grandfathered permits raises the growth rate, enhancing the home market effect. Thus, firms agglomerate across regions, and pollution and shares owned by households in one region overshadow the other. These results increase income inequality across regions. Our findings suggest that bias via leisure reduces the statistical significance of the pollution havens hypothesis.

Keywords: Foreign direct investment; Inequality; Leisure; Distribution effect; Pollution havens hypothesis (search for similar items in EconPapers)
JEL-codes: D63 F18 R11 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s12076-025-00413-2

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