Journal
ECOLOGICAL ECONOMICS
Volume 142, Issue -, Pages 249-256Publisher
ELSEVIER
DOI: 10.1016/j.ecolecon.2017.06.034
Keywords
Environmental Quality; Income Inequality; Panel Data
Funding
- Social Sciences and Humanities Research Council [430-2015-00073]
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We investigate the theoretically ambiguous link between income inequality and per capita carbon dioxide emissions using a panel data set that is substantially larger (in both regional and temporal coverage) than those used in the existing literature. Using an arguably superior group fixed effects estimator, we find that the relationship between income inequality and per capita emissions depends on the level of income. We show that for low and middle-income economies, higher income inequality is associated with lower carbon emissions while in upper middle-income and high-income economies, higher income inequality increases per capita emissions. The result is robust to the inclusion of plausible transmission variables. (C) 2017 Elsevier B.V. All rights reserved.
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