IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-03374129.html
   My bibliography  Save this paper

Protecting Natural and Social Resources: A political economy approach

Author

Listed:
  • 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 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 fiÂ…nancial elite. Groups are differentiated according to the following divides. Individuals belonging to the fiÂ…nancial elite only rely on capital incomes: they invest on Â…firms running either polluting or non-polluting activities. Individuals belonging to the first two groups are differentiated 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 different assumptions concerning the political vote: disjoint majority versus coalition voting. The main result is that -in reaction to the Â…financial elite being the unique winner of the disjoint majority vote- a peopleÂ’s green coalition can emerge, whose redistributive and green choices run against the preferences of the Â…financial elite. This leads to the “greening” of the fiÂ…nancial elite, which in turn isolates the working classes in the political arena.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Donatella Gatti, 2021. "Protecting Natural and Social Resources: A political economy approach," Working Papers hal-03374129, HAL.
    • Handle: RePEc:hal:wpaper:hal-03374129
    Note: View the original document on HAL open archive server: https://hal.science/hal-03374129
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03374129/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Iversen, Torben & Soskice, David, 2006. "Electoral Institutions and the Politics of Coalitions: Why Some Democracies Redistribute More Than Others," American Political Science Review, Cambridge University Press, vol. 100(2), pages 165-181, May.
    3. Donatella Gatti & Christophe Rault & Anne-Gael Vaubourg, 2012. "Unemployment and finance: how do financial and labour market factors interact?," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 464-489, July.
    4. Donatella Gatti, 2021. "Protection of natural and social resources. A political economy approach," Working Papers REM 2021/0195, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    5. Jason Hickel & Giorgos Kallis, 2020. "Is Green Growth Possible?," New Political Economy, Taylor & Francis Journals, vol. 25(4), pages 469-486, June.
    6. Baek, Jungho & Gweisah, Guankerwon, 2013. "Does income inequality harm the environment?: Empirical evidence from the United States," Energy Policy, Elsevier, vol. 62(C), pages 1434-1437.
    7. Marco Pagano & Paolo F. Volpin, 2005. "The Political Economy of Corporate Governance," American Economic Review, American Economic Association, vol. 95(4), pages 1005-1030, September.
    8. Bruno Amable & Stefano Palombarini, 2009. "A neorealist approach to institutional change and the diversity of capitalism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00345887, HAL.
    9. Michel Le Breton & Karine Van Der Straeten, 2017. "Alliances Électorales et Gouvernementales : La Contribution de la Théorie des Jeux Coopératifs à la Science Politique," Revue d'économie politique, Dalloz, vol. 127(4), pages 637-736.
    10. Daron Acemoglu, 2015. "Localised and Biased Technologies: Atkinson and Stiglitz's New View, Induced Innovations, and Directed Technological Change," Economic Journal, Royal Economic Society, vol. 0(583), pages 443-463, March.
    11. Bruno Amable & Donatella Gatti, 2004. "Product market competition, job security, and aggregate employment," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 667-686, October.
    12. Daron Acemoglu, 2002. "Directed Technical Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 781-809.
    13. Simone D’Alessandro & André Cieplinski & Tiziano Distefano & Kristofer Dittmer, 2020. "Feasible alternatives to green growth," Nature Sustainability, Nature, vol. 3(4), pages 329-335, April.
    14. Amable, Bruno & Gatti, Donatella, 2004. "The Political Economy of Job Protection and Income Redistribution," IZA Discussion Papers 1404, Institute of Labor Economics (IZA).
    15. Mehrdad Vahabi & Philippe Batifoulier & Nicolas Da Silva, 2020. "The Political Economy of Revolution and Institutional Change: the Elite and Mass Revolutions," Revue d'économie politique, Dalloz, vol. 130(6), pages 855-889.
    16. Rojas-Vallejos, Jorge & Lastuka, Amy, 2020. "The income inequality and carbon emissions trade-off revisited," Energy Policy, Elsevier, vol. 139(C).
    17. Ravallion, Martin & Heil, Mark & Jalan, Jyotsna, 2000. "Carbon Emissions and Income Inequality," Oxford Economic Papers, Oxford University Press, vol. 52(4), pages 651-669, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gatti, Donatella, 2022. "Going green and (un)equal ? Political coalitions, redistribution, and the environment," Economic Modelling, Elsevier, vol. 116(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gatti, Donatella, 2022. "Going green and (un)equal ? Political coalitions, redistribution, and the environment," Economic Modelling, Elsevier, vol. 116(C).
    2. Donatella Gatti, 2021. "Protection of natural and social resources. A political economy approach," Working Papers hal-04020163, HAL.
    3. Donatella Gatti, 2022. "What’s behind the Political Support for Green Welfare State Institutions?," CEPN Working Papers hal-03534136, HAL.
    4. Leroy, Aurélien & Pop, Adrian, 2019. "Macro-financial linkages: The role of the institutional framework," Journal of International Money and Finance, Elsevier, vol. 92(C), pages 75-97.
    5. Thibault Darcillon, 2016. "Do Interactions between Finance and Labour Market Institutions Affect the Income Distribution?," LABOUR, CEIS, vol. 30(3), pages 235-257, September.
    6. Zhang, Rui & Sharma, Rajesh & Tan, Zhixiong & Kautish, Pradeep, 2022. "Do export diversification and stock market development drive carbon intensity? The role of renewable energy solutions in top carbon emitter countries," Renewable Energy, Elsevier, vol. 185(C), pages 1318-1328.
    7. Rault, Christophe & Vaubourg, Anne-Gaël, 2011. "Labour Market Institutions and Unemployment: Does Finance Matter?," IZA Discussion Papers 5606, Institute of Labor Economics (IZA).
    8. Stiglitz, Joseph E., 2019. "Addressing climate change through price and non-price interventions," European Economic Review, Elsevier, vol. 119(C), pages 594-612.
    9. Shi Wang & Wen Zhang & Hua Wang & Jue Wang & Mu-Jun Jiang, 2021. "How Does Income Inequality Influence Environmental Regulation in the Context of Corruption? A Panel Threshold Analysis Based on Chinese Provincial Data," IJERPH, MDPI, vol. 18(15), pages 1-18, July.
    10. Zhu, Xuehong & Zeng, Anqi & Zhong, Meirui & Huang, Jianbai, 2021. "Elasticity of substitution and biased technical change in the CES production function for China's metal-intensive industries," Resources Policy, Elsevier, vol. 73(C).
    11. Wan, Guanghua & Wang, Chen & Wang, Jinxian & Zhang, Xun, 2022. "The income inequality-CO2 emissions nexus: Transmission mechanisms," Ecological Economics, Elsevier, vol. 195(C).
    12. Hyunsoo Kang, 2022. "Impacts of Income Inequality and Economic Growth on CO 2 Emissions: Comparing the Gini Coefficient and the Top Income Share in OECD Countries," Energies, MDPI, vol. 15(19), pages 1-15, September.
    13. Francesco Lamperti & Giovanni Dosi & Mauro Napoletano & Andrea Roventini & Alessandro Sapio, 2018. "And then he wasn't a she : Climate change and green transitions in an agent-based integrated assessment model," Working Papers hal-03443464, HAL.
    14. Zhangsheng Liu & Liuqingqing Yang & Liqin Fan, 2021. "Induced Effect of Environmental Regulation on Green Innovation: Evidence from the Increasing-Block Pricing Scheme," IJERPH, MDPI, vol. 18(5), pages 1-15, March.
    15. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    16. Haiqian Ke & Wenyi Yang & Xiaoyang Liu & Fei Fan, 2020. "Does Innovation Efficiency Suppress the Ecological Footprint? Empirical Evidence from 280 Chinese Cities," IJERPH, MDPI, vol. 17(18), pages 1-23, September.
    17. Donatella Gatti & Christophe Rault & Anne-Gael Vaubourg, 2012. "Unemployment and finance: how do financial and labour market factors interact?," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 464-489, July.
    18. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    19. Sterner, Thomas & Ewald, Jens & Sterner, Erik, 2024. "Economists and the climate," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).
    20. Derek Lemoine, 2024. "Innovation-Led Transitions in Energy Supply," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(1), pages 29-65, January.

    More about this item

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-03374129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.