Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/296125 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11036
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Environmental degradation and economic inequality are two of the defining challenges of the twenty-first century. We synthesize conceptual mechanisms that underpin inequality-environment interlinkages and take stock of the relevant empirical evidence. We propose three channels of interaction, describing, first, how the cost of environmental policy is distributed across households, second, how environmental benefits vary with household income, third, how income inequality and redistribution shape environmental outcomes. The three channels determine how both environmental quality and economic inequality matter for policy appraisal. We argue that it is crucial to consider inequality-environment interlinkages in economic research and policy design, as neither issue can be fully understood in isolation, and close by highlighting future research needs.
Document Type: 
Working Paper
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