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Is Inequality Harmful for the Environment in a Growing Economy?

Author

Listed:
  • Hubert Kempf

    (Université Paris-1 Panthéon Sorbonne)

  • Stéphane Rossignol

    (Université de Versailles, and EUREQua Université Paris-1 Panthéon-Sorbonne)

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.

Suggested Citation

  • Hubert Kempf & Stéphane Rossignol, 2005. "Is Inequality Harmful for the Environment in a Growing Economy?," Working Papers 2005.5, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2005.5
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    References listed on IDEAS

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    More about this item

    Keywords

    Inequality; Environment; Pollution abatement policy; Growth; Political economy;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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