Abstract
The reduction of income inequality and environmental vulnerability is the most important factor, through which we can achieve the target of Sustainable Development Goals (SDGs). The past papers have investigated the nexus between income inequality and carbon emissions; however, the relationship between income inequality and carbon emissions along with ecological footprint has not been studied in the case of developing countries. To this end, this study analyzed the impact of income inequality on both carbon emissions and ecological footprint as well as the impact of carbon emission and ecological footprint on income inequality by using the dataset from 2006 to 2017 for the 18 Asian developing economies. This study confirmed the positive relationship between carbon emissions, ecological footprint, and income inequality under the methodology of Driscoll and Kraay (D&K) standard error approach. Specifically, a higher-income gap is destructive for environmental degradation, whereas increasing level of carbon emissions and ecological footprint also leads to rising income inequality in the investigated region. Furthermore, foreign direct investment (FDI), easy access to electricity, and population growth control income inequality, but they have a detrimental effect on both ecological footprint and carbon emissions. The empirical findings also provide some important policy implications.
Similar content being viewed by others
Availability of data
The data that support the findings of this study are openly available at the following URLs:
https://datacatalog.worldbank.org/dataset/world-development-indicators
https://www.footprintnetwork.org/our-work/ecological-footprint/
References
Abbas S, Kousar S, Pervaiz A (2021) Effects of energy consumption and ecological footprint on CO2 emissions: an empirical evidence from Pakistan. Environ Dev Sustain 1–18
Aslanidis N, Iranzo S (2009) Environment and development: is there a Kuznets curve for CO2 emissions? Appl Econ 41(6):803–810
Aydin M (2019) Renewable and non-renewable electricity consumption–economic growth nexus: evidence from OECD countries. Renewable Energy 136:599–606
Azam M, Khan AQ (2016) Urbanization and environmental degradation: evidence from four SAARC countries—Bangladesh, India, Pakistan, and Sri Lanka. Environ Prog Sustain Energy 35(3):823–832
Bae JH (2018) Impacts of income inequality on CO2 emission under different climate change mitigation policies. Korean Econ Rev 34:187–211
Baloch A, Shah SZ, Noor ZM, Magsi HB (2018) The nexus between income inequality, economic growth and environmental degradation in Pakistan. GeoJournal 83(2):207–222
Baloch MA, Zhang J, Iqbal K, Iqbal Z (2019) The effect of financial development on ecological footprint in BRI countries: evidence from panel data estimation. Environ Sci Pollut Res 26(6):6199–6208
Baloch MA, Khan SUD, Ulucak ZŞ (2020a) Poverty and vulnerability of environmental degradation in sub-Saharan African countries: what causes what? Struct Chang Econ Dyn 54:143–149
Baloch MA, Khan SUD, Ulucak ZŞ, Ahmad A (2020) Analyzing the relationship between poverty, income inequality, and CO2 emission in sub-Saharan African countries. Sci Total Environ 740:139867
Berthe A, Elie L (2015) Mechanisms explaining the impact of economic inequality on environmental deterioration. Ecol Econ 116:191–200
Bhattacharya H (2020) Environmental and socio-economic sustainability in India: evidence from CO2 emission and economic inequality relationship. J Environ Econ Policy 9(1):57–76
Boyce JK (1994) Inequality as a cause of environmental degradation. Ecol Econ 11(3):169–178
Boyce JK (2018) Carbon pricing: effectiveness and equity. Ecol Econ 150:52–61
Charfeddine L, Mrabet Z (2017) The impact of economic development and social-political factors on ecological footprint: a panel data analysis for 15 MENA countries. Renew Sustain Energy Rev 76:138–154
Cropper M, Griffiths C (1994) The interaction of population growth and environmental quality. Am Econ Rev 84(2):250–254
Danish (2020) Moving toward sustainable development: the relationship between water productivity, natural resource rent, international trade, and carbon dioxide emissions. Sustain Dev 28(4):540–549
Danish, Zhang J, Hassan S, Iqbal K (2019) Toward achieving environmental sustainability target in organization for economic cooperation and development countries: the role of real income, research and development, and transport infrastructure. Sustain Dev 28:83–90. https://doi.org/10.1002/sd.1973
Demir C, Cergibozan R, Gök A (2019) Income inequality and CO2 emissions: empirical evidence from Turkey. Energy Environ 30(3):444–461
Dorn F, Maxand S, Kneib T (2021) The dependence between income inequality and carbon emissions: a distributional copula analysis. Available at SSRN 3800302
Driscoll JC, Kraay AC (1998) Consistent covariance matrix estimation with spatially dependent panel data. Rev Econ Stat 80(4):549–560
Duro JA, Teixidó-Figueras J (2013) Ecological footprint inequality across countries: the role of environment intensity, income and interaction effects. Ecol Econ 93:34–41
Edenhofer O, Pichs-Madruga R, Sokona Y, Farahani E, Kadner S, Seyboth K, Adler A, Baum I, Brunner S, Eickemeier P, Kriemann B (2014) IPCC, 2014: summary for policymakers, in climate change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change
Ekeocha DO (2021) Urbanization, inequality, economic development and ecological footprint: searching for turning points and regional homogeneity in Africa. J Clean Prod 291:125244
Finco MVA (2009) Poverty-environment trap: a non linear probit model applied to rural areas in the North of Brazil. Am Eurasian J Agric Environ Sci 5(4):533–539
Forabosco F, Chitchyan Z, Mantovani R (2017) Methane, nitrous oxide emissions and mitigation strategies for livestock in developing countries: a review. S Afr J Anim Sci 47(3):268–280
Grossman GM, Krueger AB (1995) Economic growth and the environment. Q J Econ 110(2):353–377
Grunewald N, Klasen S, Martínez-Zarzoso I, Muris C (2017) The trade-off between income inequality and carbon dioxide emissions. Ecol Econ 142:249–256
Hailemariam A, Dzhumashev R, Shahbaz M (2020) Carbon emissions, income inequality and economic development. Empir Econ 59(3):1139–1159
Hanewinkel M, Cullmann DA, Schelhaas MJ, Nabuurs GJ, Zimmermann NE (2013) Climate change may cause severe loss in the economic value of European forest land. Nat Clim Chang 3(3):203–207
Hanif I, Raza SMF, Gago-de-Santos P, Abbas Q (2019) Fossil fuels, foreign direct investment, and economic growth have triggered CO2 emissions in emerging Asian economies: some empirical evidence. Energy 171:493–501
Heerink N, Mulatu A, Bulte E (2001) Income inequality and the environment: aggregation bias in environmental Kuznets curves. Ecol Econ 38(3):359–367
Holtz-Eakin D, Selden TM (1995) Stoking the fires? CO2 emissions and economic growth. J Public Econ 57(1):85–101
Jebli MB, Youssef SB, Ozturk I (2016) Testing environmental Kuznets curve hypothesis: the role of renewable and non-renewable energy consumption and trade in OECD countries. Ecol Ind 60:824–831
Jorgenson A, Schor J, Huang X (2017) Income inequality and carbon emissions in the United States: a state-level analysis, 1997–2012. Ecol Econ 134:40–48
Kaika D, Zervas E (2013a) The environmental Kuznets curve (EKC) theory—part A: concept, causes and the CO2 emissions case. Energy Policy 62:1392–1402
Kaika D, Zervas E (2013b) The environmental Kuznets curve (EKC) theory. Part b: Critical Issues. Energy Policy 62:1403–1411
Kazemzadeh E, Fuinhas JA, Koengkan M (2021) The impact of income inequality and economic complexity on ecological footprint: an analysis covering a long-time span. J Environ Econ Policy 1–21
Khan SAR (2019) The nexus between carbon emissions, poverty, economic growth, and logistics operations-empirical evidence from Southeast Asian countries. Environ Sci Pollut Res 26(13):13210–13220
Khan Z, Ali S, Umar M, Kirikkaleli D, Jiao Z (2020) Consumption-based carbon emissions and international trade in G7 countries: the role of environmental innovation and renewable energy. Sci Total Environ 730:138945
Khan S, Yahong W (2021) Symmetric and asymmetric impact of poverty, income inequality, and population on carbon emission in Pakistan: new evidence from ARDL and NARDL co-integration. Front Environ Sci 9
Knight K (2014) Temporal variation in the relationship between environmental demands and well-being: a panel analysis of developed and less-developed countries. Popul Environ 36:32–47. https://doi.org/10.1007/s11111-013-0200-1
Knight KW, Schor JB, Jorgenson AK (2017) Wealth inequality and carbon emissions in high-income countries. Social Curr 4(5):403–412
Koçak E, Ulucak R, Dedeoğlu M, Ulucak ZŞ (2019) Is there a trade-off between sustainable society targets in sub-Saharan Africa? Sustain Cities Soc 51:101705
Kuznets S (1955) Economic growth and inequality income. Am Econ Rev 45(1):1–28
Lawson ET, Gordon C, Schluchter W (2012) The dynamics of poverty–environment linkages in the coastal zone of Ghana. Ocean Coast Manag 67:30–38
Liu Q, Wang S, Zhang W, Li J, Kong Y (2019) Examining the effects of income inequality on CO2 emissions: evidence from non-spatial and spatial perspectives. Appl Energy 236:163–171
Liu Y, Zhang M, Liu R (2020) The impact of income inequality on carbon emissions in China: a household-level analysis. Sustainability 12(7):2715
Luqman M, Ahmad N, Bakhsh K (2019) Nuclear energy, renewable energy and economic growth in Pakistan: evidence from non-linear autoregressive distributed lag model. Renewable Energy 139:1299–1309
Magnani E (2000) The environmental Kuznets curve, environmental protection policy and income distribution. Ecol Econ 32(3):431–443
Majeed MT, Mazhar M (2019) Financial development and ecological footprint: a global panel data analysis. Pak J Commer Soc Sci 13(2):487–514
Malik MY, Latif K, Khan Z, Butt HD, Hussain M, Nadeem MA (2020) Symmetric and asymmetric impact of oil price, FDI and economic growth on carbon emission in Pakistan: evidence from ARDL and non-linear ARDL approach. Sci Total Environ 726:138421
Masud MM, Kari FB, Banna H, Saifullah MK (2018) Does income inequality affect environmental sustainability? Evidence from the ASEAN-5. J Asia Pac Econ 23(2):213–228
Meinard Y (2021) Rationalizing environmental decision-making through economic valuation? Humanistyka I Przyrodoznawstwo 25
Mikkelson GM (2019) Invisible hand or ecological footprint? Comparing social versus environmental impacts of recent economic growth. Organ Environ 1086026619885111
Mostafa MM (2010) A Bayesian approach to analyzing the ecological footprint of 140 nations. Ecol Ind 10(4):808–817
Murshed M, Nurmakhanova M, Elheddad M, Ahmed R (2020) Value addition in the services sector and its heterogeneous impacts on CO2 emissions: revisiting the EKC hypothesis for the OPEC using panel spatial estimation techniques. Environ Sci Pollut Res 27(31):38951–38973
Narayan PK, Narayan S (2010) Carbon dioxide emissions and economic growth: panel data evidence from developing countries. Energy Policy 38(1):661–666
Ota T (2017) Economic growth, income inequality and environment: assessing the applicability of the Kuznets hypotheses to Asia. Palgrave Commun 3(1):1–23
Oxelheim L, Ghauri P (2008) EU–China and the non-transparent race for inward FDI. J Asian Econ 19(4):358–370
Padhan H, Haouas I, Sahoo B, Heshmati A (2019) What matters for environmental quality in the next eleven countries: economic growth or income inequality? Environ Sci Pollut Res 26(22):23129–23148
Rai J, Soni S (2019) Approaches to environmental decision making through human-environment relationship perspectives. J Geogr Environ Earth Sci Int 18(4):1–13
Ravallion M, Heil M, Jalan J (2000) Carbon emissions and income inequality. Oxf Econ Pap 52(4):651–669
Rees WE (1992) Ecological footprints and appropriated carrying capacity: what urban economics leaves out? Environ Urban 4:121–130. https://doi.org/10.1177/095624789200400212
Rojas-Vallejos J, Lastuka A (2020) The income inequality and carbon emissions trade-off revisited. Energy Policy 139:111302
Scolobig A, Lilliestam J (2016) Comparing approaches for the integration of stakeholder perspectives in environmental decision making. Resources 5(4):37
Solarin SA, Bello MO (2020) Energy innovations and environmental sustainability in the US: the roles of immigration and economic expansion using a maximum likelihood method. Sci Total Environ 712:135594
Steffen W, Richardson K, Rockström J, Cornell SE, Fetzer I, Bennett EM, Biggs R, Carpenter SR, De Vries W, De Wit CA, Folke C (2015) Planetary boundaries: guiding human development on a changing planet. Science 347(6223)
Tol RS (2002) Estimates of the damage costs of climate change. Part 1: Benchmark estimates. Environ Resour Econ 21(1):47–73
Torras M, Boyce JK (1998) Income, inequality, and pollution: a reassessment of the environmental Kuznets curve. Ecol Econ 25(2):147–160
Tyler E, Boyd AS, Coetzee K, Winkler H (2017) A case study of South African mitigation actions (for the special issue on mitigation actions in five developing countries). In Climate Change Mitigation Actions in Five Developing Countries. Routledge, pp 57–66
Ullah S, Awan MS (2019) Environmental Kuznets curve and income inequality: pooled mean group estimation for Asian developing countries. Forman J Econ Stud 15
Uzar U, Eyuboglu K (2019) The nexus between income inequality and CO2 emissions in Turkey. J Clean Prod 227:149–157
Wang X (2014) Addressing failures of environmental information disclosure through administrative lawsuits in China: the paradox of legal mobilization. China-EU Law J 3(3–4):165–190
Wang M, Feng C (2017) Decomposition of energy-related CO2 emissions in China: an empirical analysis based on provincial panel data of three sectors. Appl Energy 190:772–787
Wang Z, Zhang B, Wang B (2018) Renewable energy consumption, economic growth and human development index in Pakistan: evidence form simultaneous equation model. J Clean Prod 184:1081–1090
Xi X (2020) The cross-sectional impact of income inequality on life quality indicators. JABS 6(4):153–163
Zaidi S, Saidi K (2018) Environmental pollution, health expenditure and economic growth in the sub-Saharan Africa countries: panel ARDL approach. Sustain Cities Soc 41:833–840
Zhang C, Zhao W (2014) Panel estimation for income inequality and CO2 emissions: a regional analysis in China. Appl Energy 136:382–392
Zhang J, Hassan ST, Iqbal K (2020) Toward achieving environmental sustainability target in Organization for Economic Cooperation and Development countries: the role of real income, research and development, and transport infrastructure. Sustain Dev 28(1):83–90
Zhao J, Jiang Q, Dong X, Dong K (2021) Assessing energy poverty and its effect on CO2 emissions: the case of China. Energy Econ 97:105191
Funding
The research was funded by the National Social Science Foundation of China (Grant No. 18BJY164), Education Department of Henan Province (Grant No. 19A790025), National natural Science Foundation of China (Grant No. 41601566), and Humanities and Social Science Project of Education Ministry (14YJCZH128).
Author information
Authors and Affiliations
Contributions
Mr. Salim Khan: performed conceptualization, methodology, formal analysis, investigation, writing (original draft), and software coding. Dr. Wang Yahong: performed validation, software coding, and resource review and editing, discussed the results, and supervised manuscript status.
Corresponding author
Ethics declarations
Ethics approval
Not applicable.
Consent to participate
Not applicable.
Consent for publication
Not applicable.
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Ilhan Ozturk
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendix
Appendix
Table 5
Rights and permissions
About this article
Cite this article
Khan, S., Yahong, W. Income inequality, ecological footprint, and carbon dioxide emissions in Asian developing economies: what effects what and how?. Environ Sci Pollut Res 29, 24660–24671 (2022). https://doi.org/10.1007/s11356-021-17582-4
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-021-17582-4