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Is Inequality Harmful for the Environment? An Empirical Analysis Applied to Developing and Transition Countries

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  • Matthieu Clement
  • Andre Meunie

Abstract

The object of this article is to examine the relation between social inequalities and pollution. First of all we provide a survey demonstrating that, from a theoretical point of view, a decrease in inequality has an uncertain impact on the environment. Second, on the basis of these conceptual considerations, we propose an econometric analysis based on panel data (fixed-effects and dynamic panel data models) concerning developing and transition countries for the 1988-2003 period. We examine specifically the effect of inequality on the extent of local pollution (sulphur dioxide emissions and organic water pollution) by integrating the Gini index into the formulation of the environmental Kuznets' curve.

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  • Matthieu Clement & Andre Meunie, 2010. "Is Inequality Harmful for the Environment? An Empirical Analysis Applied to Developing and Transition Countries," Review of Social Economy, Taylor & Francis Journals, vol. 68(4), pages 413-445.
    • Handle: RePEc:taf:rsocec:v:68:y:2010:i:4:p:413-445
    DOI: 10.1080/00346760903480590
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    2. Alexandre BERTHE & Luc ELIE, 2014. "Les conséquences environnementales des inégalités économiques : structuration théorique et perspectives de recherche (In French)," Cahiers du GREThA (2007-2019) 2014-18, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Das, Monica & Basu, Sudip Ranjan, 2022. "Understanding the relationship between income inequality and pollution: A fresh perspective with cross-country evidence," World Development Perspectives, Elsevier, vol. 26(C).
    4. Ravnborg, Helle Munk & Gómez, Ligia Ivette, 2015. "The Importance of Inequality for Natural Resource Governance: Evidence from Two Nicaraguan Territories," World Development, Elsevier, vol. 73(C), pages 72-84.
    5. Kinda, Romuald, 2010. "Democratic institutions and environmental quality: effects and transmission channels," MPRA Paper 27455, University Library of Munich, Germany.
    6. Berthe, Alexandre & Elie, Luc, 2015. "Mechanisms explaining the impact of economic inequality on environmental deterioration," Ecological Economics, Elsevier, vol. 116(C), pages 191-200.
    7. Michael Carr & Aurelie Charles & Wilfred Dolfsma & Robert McMaster & Tonia Warnecke, 2015. "Effective Contributions to the Review of Social Economy and Social Economics—Editorial," Review of Social Economy, Taylor & Francis Journals, vol. 73(2), pages 139-145, June.
    8. Kashwan, Prakash, 2017. "Inequality, democracy, and the environment: A cross-national analysis," Ecological Economics, Elsevier, vol. 131(C), pages 139-151.
    9. Defeng Yang & Zhanqing Wang & Fangmin Lu, 2019. "The Influence of Corporate Governance and Operating Characteristics on Corporate Environmental Investment: Evidence from China," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    10. Germà Bel & Jordi J. Teixidó, 2019. "“The Political Economy of the Paris Agreement. Income Inequality and Climate Policy”," IREA Working Papers 201915, University of Barcelona, Research Institute of Applied Economics, revised Sep 2019.
    11. Salih Ozturk & Murat Cetin & Harun Demir, 2022. "Income inequality and CO2 emissions: nonlinear evidence from Turkey," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(10), pages 11911-11928, October.
    12. Sinha, Avik, 2016. "Trilateral association between SO2 / NO2 emission, inequality in energy intensity, and economic growth: A case of Indian cities," MPRA Paper 100010, University Library of Munich, Germany.

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