Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
FIEF - Trade Union Institute for Economic Research Working Paper Series, FIEF - Trade Union Institute for Economic Research

No 178:
Economic Growth, Inequality, Democratization, and the Environment

Clas Eriksson () and Joakim Persson

Abstract: We augment the Stokey (1998) model by allowing agents to differ with respect to environmental quality and income in order to analyze the impact of income and environmental inequality, and of democratization on aggregate pollution. We find that the impact of a more equal income distribution depends on the degree of democracy. In a complete democracy a more equal income distribution generates, ceteris paribus, less pollution, which is consistent with indirect empirical evidence, whereas the opposite is the case if democratic rights are highly restricted. Further-more, a democratization is argued to typically lower both the income and the environmental quality of the median voter. In this case, if, in utility terms, the fall in environmental quality is worse than the fall in consumption the median voter decides to tighten environmental legislation so that aggregate pollution decreases.

Keywords: Economic growth and the environment; inequality; politics; (follow links to similar papers)

JEL-Codes: O41; Q20; Q30; (follow links to similar papers)

21 pages, August 16, 2002

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

WP178.pdf    PDF-file (92kB) 
Download Statistics
This paper is published as:
Eriksson, Clas and Joakim Persson, (2003), 'Economic Growth, Inequality, Democratization, and the Environment', Environmental and Resource Economics, Vol. 25, No. 1, pages 1-16

Questions (including download problems) about the papers in this series should be directed to Sune Karlsson ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:fiefwp:0178 This page was generated on 2014-12-14 19:22:16