Impact of Income Inequality on Health: Does Environment Quality Matter?
AbstractThis paper examines the link between health indicators, environmental variables and income inequalities. Theoretically, all the mechanisms developed in the literature underline a negative impact of income inequality on health status. However, empirical studies find different results and the conclusions are far from a consensus. In this paper we investigate how environment degradation could be considered as a channel through which income distribution affects population health. We first develop a simple theoretical model based on Magnani (2000), in which relative income affects health status through the level of pollution abatement expenditures. Our econometric analysis shows that income inequalities negatively affect environmental quality and environment degradation worsens population’s health. This negative effect of income inequalities on environment is mitigated by good institutions. We also show that income inequalities negatively affect health status. Another interesting result is that when environmental variables are taken into account, the level and the statistical significance of the coefficient of income inequality variable vanish. This confirms that environment quality is an important channel through which income inequalities affect population health. These results hold for air pollution indicators (CO2 and SO2) and water pollution indicator (BOD). It is also robust for rich and developing countries. Countries with high income inequalities may implement distributive policies in order to avoid its negative impact on health.
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Bibliographic InfoPaper provided by CERDI in its series Working Papers with number 201006.
Date of creation: Jan 2010
Date of revision:
health status; income inequality; Environmental quality; instrumental variables method;
Other versions of this item:
- Alassane Drabo, 2011. "Impact of income inequality on health: does environment quality matter?," Environment and Planning A, Pion Ltd, London, vol. 43(1), pages 146-165, January.
- Alassane Drabo, 2011. "Impact of Income Inequality on Health: Does Environment Quality Matter?," Working Papers halshs-00552993, HAL.
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- I1 - Health, Education, and Welfare - - Health
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Matthieu CLEMENT (GREThA UMR CNRS 5113) & André MEUNIE (GREThA UMR CNRS 5113), 2008.
"Economic Growth, inequality and environment quality: An empirical analysis applied to developing and transition countries,"
Cahiers du GREThA
2008-13, Groupe de Recherche en Economie Théorique et Appliquée.
- Matthieu CLEMENT (GREThA-GRES) & André MEUNIE (GREThA-GRES), 2008. "Economic Growth, inequality and environment quality: An empirical analysis applied to developing and transition countries," Cahiers du GRES 2008-10, Groupement de Recherches Economiques et Sociales.
- Alassane Drabo, 2011.
"Agricultural primary commodity export and environmental degradation: what consequences for population's health?,"
- Alassane Drabo, 2011. "Agricultural primary commodity export and environmental degradation: what consequences for population’s health?," Working Papers 201110, CERDI.
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