Protection of natural and social resources. A political economy approach

Donatella Gatti

No 2021/0195, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: This paper studies the set-up (following a voting process) of institutional arrangements related to the protection of natural and social resources in a context of inequalities and environmental challenges. To analyze how institutional and legislative protection arises, three socioeconomic groups are considered: the educated bourgeoisie, the working classes and the ?nancial elite. Groups are di¤erentiated according to the following divides. Individuals belonging to the ?nancial elite only rely on capital incomes: they invest on ?rms running either polluting or non-polluting activities. Individuals belonging to the ?rst two groups are di¤erentiated on the following levels: the demand for redistribution (from the working class) and the claims for environment-friendly legislation in relation with clean transport means (by the educated bourgeoisie). We study the institutional framework chosen by individuals under di¤erent assumptions concerning the political vote: disjoint majority versus coalition voting. The main result is that -in reaction to the ?nancial elite being the unique winner of the disjoint majority vote- a people?s green coalition can emerge, whose redistributive and green choices run against the preferences of the ?nancial elite. This leads to the "greening" of the ?nancial elite, which in turn isolates the working classes in the political arena.

Keywords: Institutions; political choice; redistribution; green legislation (search for similar items in EconPapers)
JEL-codes: P16 P48 P51 Q59 (search for similar items in EconPapers)
Date: 2021-09
New Economics Papers: this item is included in nep-cdm, nep-env, nep-isf and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Protection of natural and social resources. A political economy approach (2021)
Working Paper: Protection of natural and social resources. A political economy approach (2021)
Working Paper: Protection of natural and social resources. A political economy approach (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp01952021

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