The Effect of Income Inequality on SO2 and SPM Emissions

Document Type : Research Paper

Authors

1 Ph.D Student , Depratment of Agricultural Economics, Marvdasht branch, Islamic Azad University, Marvdasht, Iran

2 Associate Professor, Department of Agricultural Economics, Marvdasht branch, Islamic Azad University, Marvdasht, Iran

3 Assistant Professor, Department of Economics, shiraz branch, Islamic Azad University,SHiraz , Iran

Abstract

In recent years, many policymakers and researchers have considered environmental degradation and pollution, as an international challenge. However, income inequality significantly affects the quality of the environment through social demand and can be important in policymaking. Income inequality, as a relative effect, also causes environmental degradation by changing the preferences of consumers of public environmental goods. This study investigated the effect of income inequality on SO2 and SPM emissions for the period 1990 to 2018 in the form of Johansen's approach. The results show that Gini coefficient has a positive and significant effect on SPM and SO2 emissions, so that one percent increase in Gini coefficient can effect 1.29 percent increase in SPM emissions and 1.37 percent increase in SO2 emissions. Based on the estimated results, energy consumption has a positive effect on SPM and SO2 emissions in Iran. So, one percent increase in energy consumption, 1.12 percent increases SPM emissions and 1.44 percent SO2 emissions. Economic growth has a positive effect on the release of SPM and SO2 in Iran. One percent increase in economic growth increases 0.78 percent of SPM emissions and 0.79 percent of SO2 emissions. According to the coefficient table the variable Ly2 is negative. Therefore, the Kuznets environmental curve hypothesis cannot be rejected during the period under study. Urbanization has a positive and significant effect on SPM and SO2 emissions, so that it increases one percent increase in urbanization, 0.93% SPM emissions and 0.97% SO2 emissions.

Keywords

Main Subjects


  1. Ansari Samani, H.,  Roozbehani, M., &  R., Aghaei, (2017). "Study of the effect of income inequality on the spread of pollution in the provinces of Iran", Sixth Conference of the Islamic Model of Iran, pp. 1-18. (In Farsi).
  2. Baek, J. , Gweisah, G. (2013). Does Income Inequality Harm the Environment?Empirical Evidence from the United States. Energy Policy, 62, 1434-1437 .
  3. 3- Barzegar, H. (1389). "Investigating the Relationship between Income Inequality and Air Pollution in Selected Developing Countries", M.Sc. Thesis, Bu Ali Sina University, Iran (in Persian).
  4. Behboodi, D. & H., Nategh Tajragh, (2013). "The Relationship between Income Inequality and the Environment in Iran", First National Conference on Environment, Energy and Biosafety, December 31, 2013. : Mehr Arvand Higher Education Institute, Tehran, Iran. (In Persian).
  5. Borghesi, Simone, Inequality, Growth and the Environment: A Steady-State Analysis of the Kuznets Curve and the Environmental Kuznets Curve (June 2000). U of Siena Dept. of Economics Working Paper No. 290, Available at SSRN: https://ssrn.com/abstract=238780 or http://dx.doi.org/10.2139/ssrn.238780
  6. Brannland, R., & T., Garwash,  (2008)."The Income – pollution Relationshipand the Rule of Income Distribution Evidence from Swidish Household Data", Working paper.
  7. Dehbashi, M., Pahlavani,M., & Moradi, E.(2012) Investigating the effect of trade development and economic growth on the quality of the environment Living in Iran. Economic Research / Fall 2014, Volume 49, Number 3; pp. 463-482.
  8. Drabo, A. (2010). Impact of Income Inequality on Health: Does Environment Quality Matter? Working Papers, 201006, CERDI .
  9. Ebrahimi, M.,  Babaei Agh Ismaili, M.,  & Kafili, V. (2015). Income Inequality and Environmental Quality: A Case Study of Iran, Econometric Modeling Quarterly, Second Year, First Issue, 4, pp. 59-78. (In Farsi).
  10. Energy balance sheet , (2018). https://pep.moe.gov.ir
  11. Fatoreh Chi, Z. (2017). Income Inequality and Environmental Damage: Challenges in the Equality Hypothesis with an Emphasis on Education Level, Quarterly Journal of Environmental Education and Sustainable Development, pp. 77-85. (In Farsi).
  12. Grunewald, N., Klasena, S., Martínez-Zarzoso , I., & Muris, Ch. (2017). The Trade-off Between Income Inequality and Carbon Dioxide Emissions, Ecological Economics 142 (2017) 249–256.
  13. Hao, Y., Chen, H., & Zhang, Q. (2016). Will income inequality affect environmental quality? Analysis based on China's provincial panel data, Ecological Indicators, 67: 533–542.
  14. Heerink, N., Mulatu, A., & Bulte, E. (2001). "Income inequality and the environment: aggregation bias in environmental Kuznets curves". Ecological Economics, 38, 359–367.
  15. Herati, J., Dehghani, A., Taghizadeh, H., & Amini, T.  (2016). Investigating the Impact of Economic and Political Inequality on Environmental Quality, Quarterly Journal of Economic Modeling Research, No. 23, pp. 197-231.
  16. Kheiri, M., Dehbashi, V., & Ismail Pourmoghadam, H. (2018). Analysis of the effect of income inequality on the quality of the environment in Iran (by presenting a practical goal in environmental planning), Quarterly Journal of New Attitudes in Human Geography, Year 10, Number 2, pp. 13-31. (In Farsi).
  17. Kempf, H. , Rossignol, S. (2005). Is Inequality Harmful to the Environment in a Growing Economy? ETA – Economic Theory and Applications.
  18. Lalkhezri,H., & karimi petanlar, S. (2019). Investigating the effect of income distribution inequality on carbon dioxide emissions in Iran with emphasis on energy boost, Investigating the problems of Iran's economy (formerly comparative economics) in the sixth year of spring and summer 1398 No. 1. (In Farsi).
  19. Marsiliani, l., & Renstrom, Thomas I., Inequality, Environmental Protection and Growth (April 2000). Inequality, Environmental Protection and Growth.Center Discussion Paper34/2000, Tilburg, the Netherlands.
  20. Managi,s.P., Jena, R. (2008). Environmental productivity and Kuznets curve in India. Ecological Economics,Volume 65, Issue 2, 1 April 2008, Pages 432-440.
  21. Mohammadi, S. (2016). The Impact of Income Inequality on Environmental Pollution in Iran, Allameh Tabatabai University Thesis, pp. 1-60. (In Farsi).
  22. Ravallion, M., Heil M. , Jalan, J. (2000). Carbon Emissions and Income Inequality. Oxford Economic Papers, forthcoming; previously published as A less poor world, but a hotter one?”, 1997. The poverty, environment, and growth working paper series, working paper n. 13, The World Bank, Washington D. C.
  23. Sudalma, S. , Purwanto, P., & Wahyu Santoso, L. (2014). The Effect of SO2 and NO2 from Transportation and and
  24. Uzar, U. , Eyuboglu, K. (2019) The nexus between income inequality and CO2 emissions in Turkey. J. Clean. Prod.2019, 227, 149–157.
  25. Yang, B. , M. Ali , Nazir, M.R. , Ullah,W. ,Qayyum, M. (2020) Financial instability and CO2 emissions: Cross-country evidence. Air Qual. Atmos. Health 2020, 13, 1–10.
  26. Zhang, C. & Zhao, W. (2014), Panel estimation for income inequality and CO2 emissions: a regional analysis in China, Applied Energy, 136: 382-392.