The Triplet Link of Carbon Emission, Economic Development, and Income Inequality : A Global Panel Model Perspective

The paper analyzes a triplet link between carbon emission, economic development, and income inequality. Carbon neutrality, or even reductions, have often been viewed as costly economic endeavor, and carbon inequality is known for having a link with income inequality. Through a global panel data set, we show that carbon emission can be reduced without slowing down economic development or increasing inequality. More specifically, we find that carbon emissions are likely to decline in economies that are widely diversified in terms of production and exports, and that have achieved more equal income distribution. The finding might prove relevant for policymakers who need to tackle multiple challenges – development, sustainability, and inequality – in a simultaneous way, in both developed and emerging economies