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Relationship between Corruption, Income Inequality and Environmental Degradation in Pakistan: An Econometric Analysis

Author

Listed:
  • Samia Nasreen

    (Government College Women University Faisalabad, Pakistan.)

  • Mahmood-ul-Hassan

    (SMME, Islamabad, Pakistan.)

  • Muhammad Faraz Riaz

    (Government College University Faisalabad, Pakistan.)

Abstract

The purpose of present study is to examine the impact of corruption and income inequality on environmental degradation in Pakistan using time series data for the period1980-2013. For empirical analysis, Augmented Dickey Fuller (ADF), Dickey Fuller Generalized Least Square (DF-GLS) unit root tests, Autoregressive Distributed Lag (ARDL) approach to cointegration and an Error Correction Model (ECM) has been used. The empirical findings confirm the validity of environmental Kuznets Curve (EKC) in the case of Pakistan. The results indicate that in the absence of corruption, income inequality is negatively correlated with environmental degradation while the combined effect of corruption and income inequality on environmental degradation is found to be positive in the long-run.

Suggested Citation

  • Samia Nasreen & Mahmood-ul-Hassan & Muhammad Faraz Riaz, 2016. "Relationship between Corruption, Income Inequality and Environmental Degradation in Pakistan: An Econometric Analysis," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 12-22, March.
  • Handle: RePEc:ijr:beejor:v:4:y:2016:i:41:p:12-22
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    Citations

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    Cited by:

    1. Muhammad Haseeb & Muhammad Azam, 2021. "Dynamic nexus among tourism, corruption, democracy and environmental degradation: a panel data investigation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5557-5575, April.
    2. Muhammad Haseeb & Muhammad Azam, 0. "Dynamic nexus among tourism, corruption, democracy and environmental degradation: a panel data investigation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 0, pages 1-19.

    More about this item

    Keywords

    Environmental Degradation; Corruption; Income Inequality; Pakistan;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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