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Going Green and un(Equal)? Political coalitions, redistribution and the environment

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  • Donatella Gatti

    (CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord)

Abstract

This paper presents a political economy model in which people express conflicting demands about equality and ecology, and coalitions emerge as political equilibria. We also examine the environmental and redistributive policies associated with such equilibria, the incentives for ecological transition, and the consequences for ex-post inequalities. For these purposes, we consider three socio-economic groups: the educated bourgeoisie (BE), the working class (CP), and the financial elite (EF). Specifically, we elaborate an original perspective on social groups’ preferences regarding environmental protection and capital-financed redistribution. Under the disjoint majority vote, this model delivers full capital protection, no redistribution, and no environmental policies. This is the best solution for the EF group. Consequently, a two-party coalition can be formed that improves the welfare of the BE and CP groups. Moreover, the coalitions’ equilibria deliver redistributive and environmental policies entailing higher incentives for the ecological transition and lower ex-post inequalities. Finally, in line with the rise of green finance, we investigate the surge of new alliances and highlight the risks of unequal ecological outcomes.
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Suggested Citation

  • Donatella Gatti, 2022. "Going Green and un(Equal)? Political coalitions, redistribution and the environment," Post-Print hal-04019602, HAL.
    • Handle: RePEc:hal:journl:hal-04019602
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    Cited by:

    1. Francisco Serranito & Donatella Gatti & Gaye-Del Lo, 2023. "Unpacking the green box: Determinants of Environmental Policy Stringency in European countries," Working Papers hal-04202808, HAL.
    2. Gabriel Porcile, 2024. "Sustainable development in a center-periphery model," LEM Papers Series 2024/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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    More about this item

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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