We study how income inequality affects the social value of a dynamic public good, such as natural capital. Our theory … shows that both intra- and intertemporal inequality affect the social value of public natural capital. The direction and … the value of the public good increases (decreases) with intratemporal income inequality in the case of complements …

find that how environmental inequality affects societal willingness to pay (WTP) for environmental local public goods is … inequality decreases societal (WTP) for substitutes, but this effect is reversed if environmental goods are complements or …

expanded in a consistent way to any welfare measure;and can be assessed for reliability usingstandard statistical theory …, as well as the use of distributional approxima-tions. For non-separable inequality measures we derive specific formulas …