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Do More Equal Societies Have Better Environment?

Author

Listed:
  • Musibau, Hammed

    (School of Economics and Public Policy, University of Adelaide, Adelaide, Australia)

  • Nepal, Rabindra

    (School of Business, Faculty of Business and Law, University of Wollongong, Wollongong, Australia)

  • Jamasb, Tooraj

    (Department of Economics, Copenhagen Business School)

Abstract

This study investigates environmental impacts of wealth inequality, and the moderating roles of governance quality, education, and readiness for green transition. Using CO2 emissions as a multidimensional indicator, the study employs panel data from 216 countries (1970-2023) and IV-2SLS methodology. Findings suggest equitable societies achieve better environmental outcomes through social cohesion and inclusive governance. Strong institutions, education access, and renewable energy investments mitigate inequality's environmental effects.

Suggested Citation

  • Musibau, Hammed & Nepal, Rabindra & Jamasb, Tooraj, 2025. "Do More Equal Societies Have Better Environment?," Working Papers 8-2025, Copenhagen Business School, Department of Economics.
  • Handle: RePEc:hhs:cbsnow:2025_008
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    Keywords

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    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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