On Income Inequality and Green Preferences

Laura Marsiliani and Thomas Renstrom
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Laura Marsiliani: W. Allen Wallis Institute of Political Economy, University of Rochester
Thomas Renstrom: W. Allen Wallis Institute of Political Economy, University of Rochester and CEPR

No WP30, Wallis Working Papers from University of Rochester - Wallis Institute of Political Economy

Abstract: We derive conditions on individual preferences and technology that give rise to a negative correlation between income inequality and environmental protection. We present a class of models (which captures a static model as well as an overlapping-generations model) in which individuals differ in earning abilities, and where a majority elected representative takes decisions over a pollution tax and a redistributive tax. We show that, if private consumption goods and the environment are non-inferior goods, then if the decisive individual has lower ability than the average, she will prefer a higher redistributive tax and a lower pollution tax.

Keywords: Environmental policy; redistribution; inequality; political economy (search for similar items in EconPapers)
JEL-codes: D63 D72 H21 H23 (search for similar items in EconPapers)
Pages: pages
Date: 2002-10
New Economics Papers: this item is included in nep-agr and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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