Objective of the study: Present study examines the effect of income inequality on carbon dioxide emissions. This research also investigates how the industrial changes, innovation and energy change the pattern of CO2 emission in Belt and Road Initiative (BRI) countries. Methodology/approach: Using balanced panel data of 51 BRI countries from 1994 to 2014, we analyze both the short-run and the long-run interactive effect of industrial changes, urbanization, innovation, and income inequality on CO2 emission. We used system GMM estimator, a robust and efficient estimates for panel data, to address potential endogeneity. Originality/Relevance: There is not consensus on the relationship between income inequality and CO2 emissions. Some studies show a positive relationship, while others indicate negative or no relationship. Most of past studies have examined the direct relationship between income inequality and carbon emission. This takes into account the role of moderators i.e. innovation to understand the relationship between income inequality and CO2 emission. Main Results: This findings suggest that, in the short-run, increased urbanization and extensive energy use upsurge the CO2 emission, particularly in the case of high income inequality. However, in the long-run, industrial changes and innovation lead to reduced CO2 emission. Theoretical Contribution: This study proposes a model that simultaneously links income inequality, CO2emissions, and innovation. Social/Management Contribution: This study helps the policy makers to devise policies about income distribution and environmental degradation by considering the conditions like innovation in the country or in a region like BRI.
Objective of the study: Present study examines the effect of income inequality on carbon dioxide emissions. This research also investigates how the industrial changes, innovation and energy change the pattern of CO2 emission in Belt and Road Initiative (BRI) countries. Methodology/approach: Using balanced panel data of 51 BRI countries from 1994 to 2014, we analyze both the short-run and the long-run interactive effect of industrial changes, urbanization, innovation, and income inequality on CO2 emission. We used system GMM estimator, a robust and efficient estimates for panel data, to address potential endogeneity. Originality/Relevance: There is not consensus on the relationship between income inequality and CO2 emissions. Some studies show a positive relationship, while others indicate negative or no relationship. Most of past studies have examined the direct relationship between income inequality and carbon emission. This takes into account the role of moderators i.e. innovation to understand the relationship between income inequality and CO2 emission. Main Results: This findings suggest that, in the short-run, increased urbanization and extensive energy use upsurge the CO2 emission, particularly in the case of high income inequality. However, in the long-run, industrial changes and innovation lead to reduced CO2 emission. Theoretical Contribution: This study proposes a model that simultaneously links income inequality, CO2emissions, and innovation. Social/Management Contribution: This study helps the policy makers to devise policies about income distribution and environmental degradation by considering the conditions like innovation in the country or in a region like BRI. Read More