Does income inequality affect environmental sustainability? Evidence from the ASEAN-5

Masud, Muhammad Mehedi and Kari, Fatimah and Banna, Hasanul and Saifullah, Md Khaled (2018) Does income inequality affect environmental sustainability? Evidence from the ASEAN-5. Journal of the Asia Pacific Economy, 23 (2). pp. 213-228. ISSN 1354-7860

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Official URL: https://doi.org/10.1080/13547860.2018.1442146

Abstract

Income gap among the Association of Southeast Asian Nations (ASEAN) has widened, while environment degradation has worsened since the 1990s. Using the Gini coefficient as a measure of income inequality, this paper attempts to examine whether the increasing income gap would have adverse effects on environmental sustainability and the causality relationship between income inequality and environmental sustainability. Using data from the World Bank and the Standardized World Income Inequality Database, this paper deployed the Granger causality and panel regression tests to examine these relationships on the ASEAN members of Indonesia, Malaysia, the Philippines, Thailand and Vietnam over the period of 1985–2015. The empirical results indicate that bi-directional causality relationship between income inequality and environmental sustainability exists among the bottom 40%, but the causality relationship results for the overall sample are mixed. The evidence shows that policy-makers in these countries should reduce income inequality to strengthen environmental sustainability.

Item Type: Article
Uncontrolled Keywords: Income inequality; environmental sustainability; sustainable development
Subjects: H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Economics & Administration
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 27 May 2019 06:44
Last Modified: 27 May 2019 06:44
URI: http://eprints.um.edu.my/id/eprint/21327

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