Is Inequality Harmful for the Environment in a Growing Economy?

Hubert Kempf () and Stéphane Rossignol

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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 generatespollution and a deterioration of the environment. Publicexpenditures 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.

Keywords: Political economy; environment; inequality; growth and environment (search for similar items in EconPapers)
Date: 2007-03
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Citations: View citations in EconPapers (33)

Published in Economics and Politics, 2007, 19 (1), pp.53-71. ⟨10.1111/j.1468-0343.2007.00302.x⟩

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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? (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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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00177252

DOI: 10.1111/j.1468-0343.2007.00302.x

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