Impact of Income Inequality on CO2 Emissions: Regional and Household Level Evidence from China
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
Authors
Date
2021
Department
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
25
Series
Abstract
This literature review analyses how income inequality affects emissions in China by explaining related economic theories and analysing empirical papers conducted. Income inequality and high carbon dioxide emission levels are both ongoing issues in China. The relationship between income distribution and emissions is a discussed and debated topic in literature. Theory on Environmental Kuznets curve suggests that in the long run there could be a trade-off between reducing income disparity and CO2 emissions. However, studies on the topic tend to show varying outcomes and there is no consensus on how exactly income inequality affects emissions. The empirical evidence from China indicates that income inequality can affect emission levels in varying ways, both directly and indirectly through different mechanisms. The regional disparities in China are significant in defining the impact. The results of the reviewed studies show conflicting results. Some papers show that EKC curve would exist in China regarding income inequality and emissions, while some evidence states that reducing income disparity will also lead to reductions in emissions. Thus, the direction and magnitude of the relationship between income disparity and emissions in China is unclear. Nevertheless, findings of the reviewed papers may have several implications for Chinese policymakers to consider.Description
Thesis advisor
Stryjan, MiriKeywords
EKC, inequality, carbon dioxide emissions, China, gini coefficient