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Does income inequality harm the environment?: Empirical evidence from the United States

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  • Baek, Jungho
  • Gweisah, Guankerwon

Abstract

This study revisits the growth-inequality-environment nexus in the context of country-specific time series data. The short- and long-run effects of income inequality, economic growth and energy consumption on CO2 emissions in the U.S. are examined using the autoregressive distributed lag (ARDL) approach. We find that more equitable distribution of income in the U.S. results in better environmental quality in the short- and long-run. It is also found that, in both the short- and long-run, economic growth has a beneficial effect on environmental quality, whereas energy consumption has a detrimental effect on the environment.

Suggested Citation

  • Baek, Jungho & Gweisah, Guankerwon, 2013. "Does income inequality harm the environment?: Empirical evidence from the United States," Energy Policy, Elsevier, vol. 62(C), pages 1434-1437.
  • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:1434-1437 DOI: 10.1016/j.enpol.2013.07.097
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Chuanguo & Zhao, Wei, 2014. "Panel estimation for income inequality and CO2 emissions: A regional analysis in China," Applied Energy, Elsevier, pages 382-392.
    2. repec:eee:rensus:v:74:y:2017:i:c:p:1336-1345 is not listed on IDEAS
    3. Beate Jochimsen & Christian Raffer, 2016. "Herausforderungen bei der Messung von Wohlfahrt," Discussion Papers of DIW Berlin 1595, DIW Berlin, German Institute for Economic Research.
    4. Sy-Hoa HO, 2015. "Long-run determinants of sovereign bond index in emerging market: New evidence from asymmetric and nonlinear pass-through," Documents de recherche 15-02, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    5. Hübler, Michael, 2017. "The inequality-emissions nexus in the context of trade and development: A quantile regression approach," Ecological Economics, Elsevier, vol. 134(C), pages 174-185.
    6. repec:eee:ecolec:v:142:y:2017:i:c:p:249-256 is not listed on IDEAS
    7. Alexandre BERTHE & Luc ELIE, 2014. "Les conséquences environnementales des inégalités économiques : structuration théorique et perspectives de recherche (In French)," Cahiers du GREThA 2014-18, Groupe de Recherche en Economie Théorique et Appliquée.
    8. Lutz Sager, 2017. "Income inequality and carbon consumption: evidence from environmental Engel curves," GRI Working Papers 285, Grantham Research Institute on Climate Change and the Environment.
    9. Li, Tingting & Wang, Yong & Zhao, Dingtao, 2016. "Environmental Kuznets Curve in China: New evidence from dynamic panel analysis," Energy Policy, Elsevier, vol. 91(C), pages 138-147.
    10. Berthe, Alexandre & Elie, Luc, 2015. "Mechanisms explaining the impact of economic inequality on environmental deterioration," Ecological Economics, Elsevier, vol. 116(C), pages 191-200.
    11. repec:gam:jscscx:v:6:y:2017:i:4:p:147-:d:121568 is not listed on IDEAS

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    Keywords

    ARDL; Environment; Inequality;

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