Master's Culminating Experience
This paper examines the impact of income inequality on carbon dioxide emissions and the relationship between CO2 emissions and GDP using panel data. It initially examines the relationship between income and environmental degradation without introducing the inequality variable, but then examines how inequality affects CO2 emissions and their relationship with economic growth.
Relying on the linear functional form equations of the levels and log models, this paper finds evidence that support specifications which assume the constancy of the relationship between per capita C02 emissions and per capita GDP. The results of the cubic functional form equations of the log models (for the FE) are consistent with a cubic relationship between per capita C02 emissions and per capita income. The inequality variables are statistically non-different from zero, denoting that income inequality has no causal effect on CO2 emissions.
Moulaye, M. A.
(2006). The Impact of Income Inequality on Carbon Dioxide Emissions (CO2) and the CO2-GDP Link. .