Does income inequality affect environmental sustainability? Evidence from the ASEAN-5
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 en...
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Taylor & Francis
2018
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author | Masud, Muhammad Mehedi Kari, Fatimah Banna, Hasanul Saifullah, Md Khaled |
author_facet | Masud, Muhammad Mehedi Kari, Fatimah Banna, Hasanul Saifullah, Md Khaled |
author_sort | Masud, Muhammad Mehedi |
collection | UM |
description | 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. |
first_indexed | 2024-03-06T05:53:50Z |
format | Article |
id | um.eprints-21327 |
institution | Universiti Malaya |
last_indexed | 2024-03-06T05:53:50Z |
publishDate | 2018 |
publisher | Taylor & Francis |
record_format | dspace |
spelling | um.eprints-213272019-05-27T06:44:21Z http://eprints.um.edu.my/21327/ Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 Masud, Muhammad Mehedi Kari, Fatimah Banna, Hasanul Saifullah, Md Khaled HC Economic History and Conditions 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. Taylor & Francis 2018 Article PeerReviewed 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, DOI https://doi.org/10.1080/13547860.2018.1442146 <https://doi.org/10.1080/13547860.2018.1442146>. https://doi.org/10.1080/13547860.2018.1442146 doi:10.1080/13547860.2018.1442146 |
spellingShingle | HC Economic History and Conditions Masud, Muhammad Mehedi Kari, Fatimah Banna, Hasanul Saifullah, Md Khaled Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 |
title | Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 |
title_full | Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 |
title_fullStr | Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 |
title_full_unstemmed | Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 |
title_short | Does income inequality affect environmental sustainability? Evidence from the ASEAN-5 |
title_sort | does income inequality affect environmental sustainability evidence from the asean 5 |
topic | HC Economic History and Conditions |
work_keys_str_mv | AT masudmuhammadmehedi doesincomeinequalityaffectenvironmentalsustainabilityevidencefromtheasean5 AT karifatimah doesincomeinequalityaffectenvironmentalsustainabilityevidencefromtheasean5 AT bannahasanul doesincomeinequalityaffectenvironmentalsustainabilityevidencefromtheasean5 AT saifullahmdkhaled doesincomeinequalityaffectenvironmentalsustainabilityevidencefromtheasean5 |