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Impact of Income Inequality on CO2 Emissions

In: Proceedings of the 2023 International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2023)

Author

Listed:
  • Yufei Xie

    (International College of Beijing, China Agricultural University)

Abstract

Since the 21st century, income inequality and carbon emissions have become huge challenges for countries around the world. Based on the panel data of 60 countries from 2005 to 2019 as samples, this paper analyzes the impact of income inequality on CO2 emissions using the moderating effect model. Not only it analyzes the moderating effect of opening degree, foreign investment level, and economic structure in the impact of income inequality on CO2 emissions, but it also classifies and studies the heterogeneity of population aging and economic development. The results show that the increase in income inequality will inhibit CO2 emissions. This inhibition will weaken with the improvement of the opening degree, but it will strengthen with the improvement of foreign investment and the increase of manufacturing share. According to the age structure, income inequality has a restraining effect on CO2 emissions when the country is in the aging stage, while the restraining effect is not obvious for countries not in the aging stage. Further, according to different income levels, it is found that the impact of income inequality and CO2 emissions in low and middle-income countries is not obvious. Income inequality will promote CO2 emissions in upper middle-income countries, while it will decrease CO2 emissions in high-income countries.

Suggested Citation

  • Yufei Xie, 2024. "Impact of Income Inequality on CO2 Emissions," Advances in Economics, Business and Management Research, in: Peng Dou & Keying Zhang (ed.), Proceedings of the 2023 International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2023), pages 712-735, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-441-9_61
    DOI: 10.2991/978-94-6463-441-9_61
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