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Protection of natural and social resources. A political economy approach

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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 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 ?nancial elite. Groups are di¤erentiated according to the following divides. Individuals belonging to the ?nancial elite only rely on capital incomes: they invest on ?rms running either polluting or non-polluting activities. Individuals belonging to the ?rst two groups are di¤erentiated 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 di¤erent assumptions concerning the political vote: disjoint majority versus coalition voting. The main result is that -in reaction to the ?nancial elite being the unique winner of the disjoint majority vote- a people?s green coalition can emerge, whose redistributive and green choices run against the preferences of the ?nancial elite. This leads to the "greening" of the ?nancial elite, which in turn isolates the working classes in the political arena.
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  • Donatella Gatti, 2021. "Protection of natural and social resources. A political economy approach," Working Papers hal-04020163, HAL.
    • Handle: RePEc:hal:wpaper:hal-04020163
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    Cited by:

    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. "Protecting Natural and Social Resources: A political economy approach," Working Papers 2021.10, International Network for Economic Research - INFER.

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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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