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Economic Growth, inequality and environment quality: An empirical analysis applied to developing and transition countries

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  • Matthieu CLEMENT
  • André MEUNIE

Abstract

This article aims at examining the relationship between social inequalities and pollution. On the one hand, it proposes a survey which shows that from a theoretical point of view, a decrease in inequality has an undetermined effect on environment. On the other hand, on the basis of these theoretical considerations, we propose an econometric analysis based on panel data for developing and transition countries during the period 1988-2003. More precisely, we examine the effect of income inequalities on the degree of local pollution (sulphur dioxide emissions and organic water pollution) by integrating Gini index in the formulation of environmental Kuznets curve. Then, two effects may be tested: (i) a direct effect of inequalities on pollution; (ii) an indirect effect by which the degree of inequality influence pollution by his negative impact on political freedoms.

Suggested Citation

  • Matthieu CLEMENT & André MEUNIE, 2008. "Economic Growth, inequality and environment quality: An empirical analysis applied to developing and transition countries," Cahiers du GREThA (2007-2019) 2008-13, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2008-13
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    File URL: http://cahiersdugretha.u-bordeaux.fr/2008/2008-13.pdf
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    Cited by:

    1. Alassane Drabo, 2011. "Impact of Income Inequality on Health: Does Environment Quality Matter?," Environment and Planning A, , vol. 43(1), pages 146-165, January.
    2. Henninger, Ella & Smith, E. Keith, 2024. "Beyond the haze: Decomposing the effect of economic inequality on global air quality from 2000 to 2020," Ecological Economics, Elsevier, vol. 222(C).

    More about this item

    Keywords

    pollution; inequality; environmental Kuznets curve; panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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