Title: Fiscal policy, income distribution and growth with environmental restrictions

Authors: Oscar Alfranca, Miguel-Angel Galindo

Addresses: Departament d'Enginyeria Agroalimentaria i Biotecnologia, Universitat Politecnica de Catalunya, Av. Canal Olimpic, s/n 08860 Castelldefels, Barcelona, Spain. ' University of Castilla, La Mancha, Avenida de Europa, 11 B 3D, Pozuelo de Alarcon, 28224 Madrid, Spain

Abstract: The main objective of this paper is to explain the effects of income inequality on growth, when the environment is an important social and economic issue. A model is presented in which the effects of fiscal policy on CO₂ emissions, employment, income distribution and economic growth are tested with an empirical panel data model for OECD countries. In the paper, the impact of environmental fiscal policy on growth will be estimated and also the interaction of environmental fiscal policies with social and income-distribution policies. The econometric panel data model is proposed and fitted to annual data for European Union countries, 1969–2001.

Keywords: CO₂ emissions; carbon dioxide; environment; fiscal policy; economic growth; income distribution; environmental restrictions; income inequality; European Union.

DOI: 10.1504/IJPP.2006.009800

International Journal of Public Policy, 2006 Vol.1 No.3, pp.233 - 243

Published online: 14 May 2006 *

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