Is Inequality Harmful for the Environment in a Growing Economy?

Hubert Kempf () and Stéphane Rossignol

No 2005.5, Working Papers from Fondazione Eni Enrico Mattei

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; Environment; Pollution abatement policy; Growth; Political economy (search for similar items in EconPapers)
JEL-codes: D31 O11 Q50 Q58 (search for similar items in EconPapers)
Date: 2005-01
New Economics Papers: this item is included in nep-dge, nep-env, nep-pol and nep-res
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
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? (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)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2005.5

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