Unionised labour market, environment and endogenous growth

In this paper, a model of endogenous economic growth is developed with special focus on the interaction between unionized labour market and environmental pollution. We introduce trade union; use both ‘Efficient Bargaining’ ‘Right to Manage’ solve negotiation problem. Environmental pollution result production; union bargains not only for wage employment but also protection environment. derive properties optimum income tax policy while financing abatement expenditure; analyse effects unionization level rate. It appears that rate varies inversely relative bargaining power union. An increase in may enhance if highly oriented. However, always forces firm raise spending environment protection. So, unionisation rate, even first effect negative, second dominates effect.