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Title:Relief for the environment? The importance of an increasingly unimportant industrial sector PDF Logo
Authors:Gassebner, Martin
Gaston, Noel
Lamla, Michael
Issue Date:2006
Series/Report no.:Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 130
Abstract:Deindustrialisation, stagnant real incomes of production workers and increasing inequality are latter-day features of many economies. It's common to assume that such developments pressure policy-makers to relax environmental standards. However, when heavily polluting industries become less important economically, their political importance also tends to diminish. Consequently, a regulator may increase the stringency of environmental policies. Like some other studies, we find that declining industrial employment translates into stricter environmental standards. In contrast to previous studies, but consistent with our argument, we find that greater income inequality is associated with policies that promote a cleaner environment.
Subjects:Environmental regulations
deindustrialisation
income inequality
extreme bounds analysis
JEL:Q58
P16
J31
C23
Persistent Identifier of the first edition:doi:10.3929/ethz-a-005139293
Document Type:Working Paper
Appears in Collections:KOF Working Papers, KOF Konjunkturforschungsstelle, ETH Zürich

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