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Impact of income inequality on carbon emissions: a matter of corruption governance

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Abstract

Corruption is often linked with income inequality and its impact on carbon emissions. This study investigates the moderating effect of corruption governance on the relationship between income inequality and carbon emissions. Panel data for 62 countries from 2012 to 2020 were used. We employed a threshold panel regression approach, considering income inequality as the explanatory variable and carbon dioxide emissions as the dependent variable, with corruption governance as the threshold variable. Our findings suggest that enhancing the level of corruption governance can mitigate the CO2 emissions driven by income inequality. Specifically, we found a shift in the impact on CO2 emissions when corruption governance crosses a certain threshold. This study provides insights into how improving corruption governance can help in managing the environmental effects of income inequality.

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Availability of data and materials

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Funding

The author thanks the following funds for their support: National Natural Science Foundation of China (grant no. 72104246).

Author information

Authors and Affiliations

Authors

Contributions

QW: conceptualization, methodology, software, data curation, writing—original draft preparation, supervision, and writing—reviewing and editing. ZY: methodology, software, investigation, writing—original draft, and writing—reviewing and editing. RL: conceptualization, methodology, software, investigation, writing—original draft, and writing—reviewing and editing

Corresponding author

Correspondence to Qiang Wang.

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Not applicable

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Not applicable

Competing interests

The authors declare no competing interests.

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Responsible Editor: Ilhan Ozturk

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Appendix

Appendix

Appendix A. Country list

Country name

Albania

Estonia

North Macedonia

Argentina

Finland

Montenegro

Armenia

France

Netherlands

Austria

United Kingdom

Norway

Belgium

Georgia

Panama

Bulgaria

Greece

Peru

Belarus

Honduras

Poland

Bolivia

Croatia

Portugal

Brazil

Hungary

Paraguay

Canada

Indonesia

Russian Federation

Switzerland

Ireland

El Salvador

China

Iran, Islamic Rep

Serbia

Colombia

Iceland

Slovak Republic

Costa Rica

Israel

Slovenia

Cyprus

Italy

Sweden

Czech Republic

Kazakhstan

Thailand

Germany

Kyrgyz Republic

Turkey

Denmark

Lithuania

Ukraine

Dominican Republic

Luxembourg

Uruguay

Ecuador

Latvia

United States

Spain

Moldova

 

Appendix B. Unit root test in variables order

 

Breitung test

HT test

IPS test

Statistic

p-value

Statistic

p-value

Statistic

p-value

CO2

0.4801

0.6844

0.8994

1.0000

−3.4299

0.0003

Gini

2.8438

0.9978

0.5736

0.0005

−0.5046

0.3069

top10

2.1794

0.9854

0.4913

0.0000

−2.2969

0.0108

top20

2.7998

0.9974

0.5626

0.0002

0.1882

0.5746

cce

2.2666

0.9883

0.7014

0.5144

−1.5519

0.0603

lnGDP

−0.8043

0.2106

0.8026

0.9963

4.6330

1.0000

lnGDP2

−0.8358

0.2016

0.8010

0.9958

4.9734

1.0000

rnew

−0.6066

0.2721

0.8180

0.9990

1.7424

0.9593

ind

0.5080

0.6943

0.6276

0.0295

−1.3481

0.0888

open

6.4184

1.0000

0.7468

0.8888

−1.8549

0.0318

elec

0.5726

0.7166

−2.2687

0.0116

10.3114

1.0000

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Wang, Q., Yang, Z. & Li, R. Impact of income inequality on carbon emissions: a matter of corruption governance. Environ Sci Pollut Res 31, 5173–5189 (2024). https://doi.org/10.1007/s11356-023-31190-4

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  • DOI: https://doi.org/10.1007/s11356-023-31190-4

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