Is Inequality Harmful for the Environment in a Growing Economy?
24 Pages Posted: 2 Feb 2005
Date Written: January 2005
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
JEL Classification: D31, O11, Q50, Q58
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Simple Analytics of the Environmental Kuznets Curve
By James Andreoni and Arik Levinson
-
The Simple Analytics of the Environmental Kuznets Curve
By James Andreoni and Arik Levinson
-
Reexamining the Empirical Evidence for an Environmental Kuznets Curve
By William T. Harbaugh, Arik Levinson, ...
-
A Positive Model of Growth and Pollution Controls
By Larry Jones and Rody Manuelli
-
Economic Growth and the Environment: A Review of Theory and Empirics
By William A. Brock and M. Scott Taylor
-
By William A. Brock and M. Scott Taylor
-
By William A. Brock and M. Scott Taylor
-
The Environmental Kuznets Curve: Exploring a Fresh Specification
By David F. Bradford, Rebecca Fender, ...
-
The Environmental Kuznets Curve: Exploring a Fresh Specification
By David F. Bradford, Rebecca Fender, ...