Abstract
ABSTRACT Our study investigates the association between income inequality and carbon dioxide (CO2) emissions in Canada, using data from 1981 to 2021. We employ the autoregressive distributed lag bounds testing approach to cointegration. The central finding is a positive long-run cointegrating relationship between changes in the share of income of the top 1% and changes in CO2 emissions. Specifically, a 1% increase in the share of income of the top 1% is associated with a 0.07% increase in CO2 emissions. This finding, which aligns with the political economy argument and the Veblen effect, has significant policy implications. One is that it underscores the importance of considering income redistribution in the context of addressing environmental degradation in Canada.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.