Does economic inequality have a mitigating effect on carbon inequality? The role of economic development in emerging market economies

Abstract

The study investigates the relationship between economic inequality and carbon inequality within emerging economies. The augmented mean group (AMG) approach has been employed to analyse how variations in income distribution contribute to disparities in carbon emissions in 22 emerging economies from 1990 to 2019. Further the study has focused on the impacts of economic growth, urbanisation, and natural resources rent. The findings show that economic inequality worsens carbon disparity, revealing the complex relationship between economic and environmental issues. Further results show that economic expansion, urbanisation, and natural resource rent increase carbon disparity. The feasible generalised least squares (FGLS) estimate approach confirms these findings' robustness. Our research emphasises the importance of addressing income inequality to promote equitable and sustainable development.