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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Main Authors: Masud, Muhammad Mehedi, Kari, Fatimah, Banna, Hasanul, Saifullah, Md Khaled
Format: Article
Published: Taylor & Francis 2018
Subjects:
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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.
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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
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