Social and Behavioral Sciences Commons^™

Unsustainable Sustainability: Do Policies That Increase Environmental Quality Exacerbate Income Inequality?, Haley K. Skinner

Gettysburg Economic Review

International pressure to meet climate and sustainability goals are mounting. Countries attempting to industrialize in the age of sustainability are tasked with industrializing using low-carbon practices. The transition to a “green” economy requires elimination of some jobs and skillsets that may upset social equality. This paper empirically examines the hypothesis that policies aimed at increased environmental performance promote increased income inequality in developing countries. Because existing literature firmly supports the hypothesis that lower income inequality leads to higher environmental performance, this paper develops a simultaneous equations model (SEM) to estimate the hypothesized endogenous relationship using two stage least squares (2SLS) …