IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v47y2024i5p2178-2193.html
   My bibliography  Save this article

Globalisation and carbon dioxide emissions inequality in OECD countries

Author

Listed:
  • Jianchun Fang
  • Giray Gozgor
  • Mantu Kumar Mahalik
  • Gupteswar Patel
  • Xueyin Song

Abstract

Economic growth has been crucial in contributing to carbon dioxide (CO2) emissions from the Industrial Revolution, and it affects CO2 emissions heterogeneously with different income levels. Therefore, studying the role of economic growth on inequality in carbon emissions is imperative. This paper analyses the determinants of CO2 emissions inequality in the panel dataset of 37 Organisation for Economic Co‐operation and Development (OECD) countries from 1990 to 2019. Age dependency, globalisation, and institutional quality reduce CO2 inequality in the OECD economies. However, gross domestic product per capita increases CO2 inequality. The results are robust to utilise different panel data estimation techniques. This paper provides the first evidence in the literature of determinants of CO2 inequality across the OECD countries. It is suggested that governments in the OECD economies offer a blueprint for a sustainable society of green economic growth. Other potential policy implications are also discussed.

Suggested Citation

  • Jianchun Fang & Giray Gozgor & Mantu Kumar Mahalik & Gupteswar Patel & Xueyin Song, 2024. "Globalisation and carbon dioxide emissions inequality in OECD countries," The World Economy, Wiley Blackwell, vol. 47(5), pages 2178-2193, May.
  • Handle: RePEc:bla:worlde:v:47:y:2024:i:5:p:2178-2193
    DOI: 10.1111/twec.13542
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.13542
    Download Restriction: no

    File URL: https://libkey.io/10.1111/twec.13542?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. You, Wanhai & Lv, Zhike, 2018. "Spillover effects of economic globalization on CO2 emissions: A spatial panel approach," Energy Economics, Elsevier, vol. 73(C), pages 248-257.
    2. Tamazian, Artur & Bhaskara Rao, B., 2010. "Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies," Energy Economics, Elsevier, vol. 32(1), pages 137-145, January.
    3. Giray Gozgor & Priya Ranjan, 2017. "Globalisation, inequality and redistribution: Theory and evidence," The World Economy, Wiley Blackwell, vol. 40(12), pages 2704-2751, December.
    4. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    5. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    6. Jha, Priyaranjan & Gozgor, Giray, 2019. "Globalization and taxation: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 59(C), pages 296-315.
    7. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    8. Brian R. Copeland & M. Scott Taylor, 2004. "Trade, Growth, and the Environment," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 7-71, March.
    9. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    10. Sun, Huaping & Edziah, Bless Kofi & Sun, Chuanwang & Kporsu, Anthony Kwaku, 2019. "Institutional quality, green innovation and energy efficiency," Energy Policy, Elsevier, vol. 135(C).
    11. Wang, Keying & Cui, Yongyan & Zhang, Hongwu & Shi, Xunpeng & Xue, Jinjun & Yuan, Zhao, 2022. "Household carbon footprints inequality in China: Drivers, components and dynamics," Energy Economics, Elsevier, vol. 115(C).
    12. Xu, Chong & Wang, Bingjie & Chen, Jiandong & Shen, Zhiyang & Song, Malin & An, Jiafu, 2022. "Carbon inequality in China: Novel drivers and policy driven scenario analysis," Energy Policy, Elsevier, vol. 170(C).
    13. William Nordhaus, 2019. "Climate Change: The Ultimate Challenge for Economics," American Economic Review, American Economic Association, vol. 109(6), pages 1991-2014, June.
    14. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," Post-Print halshs-04157767, HAL.
    15. Gozgor, Giray & Tiwari, Aviral Kumar & Khraief, Naceur & Shahbaz, Muhammad, 2019. "Dependence structure between business cycles and CO2 emissions in the U.S.: Evidence from the time-varying Markov-Switching Copula models," Energy, Elsevier, vol. 188(C).
    16. Dominik Wiedenhofer & Dabo Guan & Zhu Liu & Jing Meng & Ning Zhang & Yi-Ming Wei, 2017. "Unequal household carbon footprints in China," Nature Climate Change, Nature, vol. 7(1), pages 75-80, January.
    17. Zallé, Oumarou, 2019. "Natural resources and economic growth in Africa: The role of institutional quality and human capital," Resources Policy, Elsevier, vol. 62(C), pages 616-624.
    18. Starr, Jared & Nicolson, Craig & Ash, Michael & Markowitz, Ezra M. & Moran, Daniel, 2023. "Assessing U.S. consumers' carbon footprints reveals outsized impact of the top 1%," Ecological Economics, Elsevier, vol. 205(C).
    19. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    20. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    21. Kevin E. Trenberth & Aiguo Dai & Gerard van der Schrier & Philip D. Jones & Jonathan Barichivich & Keith R. Briffa & Justin Sheffield, 2014. "Global warming and changes in drought," Nature Climate Change, Nature, vol. 4(1), pages 17-22, January.
    22. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," PSE-Ecole d'économie de Paris (Postprint) halshs-04157767, HAL.
    23. Festus Victor Bekun, 2022. "Mitigating Emissions in India: Accounting for the Role of Real Income, Renewable Energy Consumption and Investment in Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 188-192.
    24. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    25. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    26. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    27. Liddle, Brantley & Lung, Sidney, 2010. "Age-Structure, Urbanization, and Climate Change in Developed Countries: Revisiting STIRPAT for Disaggregated Population and Consumption-Related Environmental Impacts," MPRA Paper 59579, University Library of Munich, Germany.
    28. Lucas Chancel, 2022. "Global carbon inequality over 1990–2019," Nature Sustainability, Nature, vol. 5(11), pages 931-938, November.
    29. Kangyin Dong & Xiucheng Dong & Qingzhe Jiang, 2020. "How renewable energy consumption lower global CO2 emissions? Evidence from countries with different income levels," The World Economy, Wiley Blackwell, vol. 43(6), pages 1665-1698, June.
    30. Jianchun Fang & Giray Gozgor & Cheng Yan, 2021. "Does globalisation alleviate polarisation?," The World Economy, Wiley Blackwell, vol. 44(4), pages 1031-1052, April.
    31. Xu, Xinkuo & Han, Liyan & Lv, Xiaofeng, 2016. "Household carbon inequality in urban China, its sources and determinants," Ecological Economics, Elsevier, vol. 128(C), pages 77-86.
    32. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    33. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    34. Apergis, Nicholas, 2016. "Environmental Kuznets curves: New evidence on both panel and country-level CO2 emissions," Energy Economics, Elsevier, vol. 54(C), pages 263-271.
    35. Gozgor, Giray & Mahalik, Mantu Kumar & Demir, Ender & Padhan, Hemachandra, 2020. "The impact of economic globalization on renewable energy in the OECD countries," Energy Policy, Elsevier, vol. 139(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George E. Halkos & Michael L. Polemis, 2017. "Does Financial Development Affect Environmental Degradation? Evidence from the OECD Countries," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1162-1180, December.
    2. Iftikhar Yasin & Nawaz Ahmad & M. Aslam Chaudhary, 2020. "Catechizing the Environmental-Impression of Urbanization, Financial Development, and Political Institutions: A Circumstance of Ecological Footprints in 110 Developed and Less-Developed Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 621-649, January.
    3. Chen, Limei & Gozgor, Giray & Mahalik, Mantu Kumar & Pal, Shreya & Rather, Kashif Nesar, 2023. "How does geopolitical risk affect CO2 emissions? The role of natural resource rents," Resources Policy, Elsevier, vol. 87(PB).
    4. Lin, Tsung-Xian & Gozgor, Giray & Rather, Kashif Nesar & Mahalik, Mantu Kumar & Lau, Chi Keung Marco, 2024. "How do natural resource rents and productive capacity affect carbon emissions? Evidence from developed and developing countries," Resources Policy, Elsevier, vol. 93(C).
    5. Lau, Lin-Sea & Choong, Chee-Keong & Ng, Cheong-Fatt & Liew, Feng-Mei & Ching, Suet-Ling, 2019. "Is nuclear energy clean? Revisit of Environmental Kuznets Curve hypothesis in OECD countries," Economic Modelling, Elsevier, vol. 77(C), pages 12-20.
    6. Sung, Bongsuk & Song, Woo-Yong & Park, Sang-Do, 2018. "How foreign direct investment affects CO2 emission levels in the Chinese manufacturing industry: Evidence from panel data," Economic Systems, Elsevier, vol. 42(2), pages 320-331.
    7. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2016. "Trade openness and environmental quality: International evidence," Energy Policy, Elsevier, vol. 92(C), pages 45-55.
    8. Charalampos Agiropoulos & Michael L. Polemis & Michael Siopsis & Sotiris Karkalakos, 2022. "Revisiting the finance‐growth nexus: A socioeconomic approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2762-2783, July.
    9. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    10. Zhao, Jun & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin, 2021. "Assessing energy poverty and its effect on CO2 emissions: The case of China," Energy Economics, Elsevier, vol. 97(C).
    11. Shahbaz, Muhammad & Balsalobre-Lorente, Daniel & Sinha, Avik, 2019. "Foreign Direct Investment–CO2 Emissions Nexus in Middle East and North African countries: Importance of Biomass Energy Consumption," MPRA Paper 91729, University Library of Munich, Germany, revised 19 Jan 2019.
    12. Zhao, Jun & Shahbaz, Muhammad & Dong, Xiucheng & Dong, Kangyin, 2021. "How does financial risk affect global CO2 emissions? The role of technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    13. Halkos, George & Polemis, Michael, 2016. "Examining the impact of financial development on the environmental Kuznets curve hypothesis," MPRA Paper 75368, University Library of Munich, Germany.
    14. Iftikhar Yasin & Nawaz Ahmad & Muhammad Aslam Chaudhary, 2021. "The impact of financial development, political institutions, and urbanization on environmental degradation: evidence from 59 less-developed economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 6698-6721, May.
    15. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    16. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    17. Shreya Pal, 2024. "The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions," South Asian Journal of Macroeconomics and Public Finance, , vol. 13(2), pages 169-212, December.
    18. Fang, Wen Shwo & Miller, Stephen M. & Yeh, Chih-Chuan, 2012. "The effect of ESCOs on energy use," Energy Policy, Elsevier, vol. 51(C), pages 558-568.
    19. Peñasco, Cristina & del Río, Pablo & Romero-Jordán, Desiderio, 2017. "Gas and electricity demand in Spanish manufacturing industries: An analysis using homogeneous and heterogeneous estimators," Utilities Policy, Elsevier, vol. 45(C), pages 45-60.
    20. Federica Cappelli, 2024. "Unequal contributions to CO2 emissions along the income distribution within and between countries," Working Papers 2024.06, Fondazione Eni Enrico Mattei.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:47:y:2024:i:5:p:2178-2193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.