Document Type : ORIGINAL ARTICLE
Authors
1 Razi university
2 Razi University
Abstract
Clarifying the relationship between income inequality and carbon emissions can be a reference for achieving sustainable development and improving the income allocation mechanism. This study focuses on the provinces of Iran and first calculates the emission of carbon dioxide caused by the final energy consumption of the provinces in the period of 2015-2016. By considering cross-sectional dependence, the long-run relationship between model variables is confirmed. Also, the results indicate the confirmation of spatial correlation. The estimation of the Spatial Durbin Model(SDM) in full dynamic case shows that lagged CO2 emission ( & ) positively and significantly affects the CO2 emission of the provinces. Spatial effects of lagged explanatory variables (production, energy intensity and Gini coefficient) are significant on CO2 emissions. The positive and significant spatial dependence coefficient indicates that the emission of CO2 in one province has a positive spillover effect on the emission of CO2 in neighboring provinces. Kuznets' environmental hypothesis is confirmed. Gini coefficient and energy intensity have a positive and significant effect on carbon dioxide emissions. Sustainable economic growth can be achieved by reducing energy intensity. Social equity reduces carbon emissions by redistributing income from rich to poor households. Therefore, implementing policies to improve income distribution and strengthening institutions that can help overcome income inequality by supporting the rights of poor people, along with reforming energy policies, can help improve the quality of the environment in Iran.
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