An Investigation of the Long-run and Short-run Impactsof Income Inequality on Quality of Environment in Iran (An Application of the Bayer-HanckCointegrationApproach)

Document Type : Research Paper

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Abstract

Abstract
The main objective of this study is investigation the impact of income inequality on quality of environment in Iran in the long-run and short-run. For this purpose, using annual data during the period 1967-2013 and Bayer-Hanck Cointegration approach to examine the impact of income inequality on environmental quality in Iran. The short-run and long-run effects of income inequality, economic growth and energy consumption on CO2emission in the Iran are examined with using the autoregressive distributed lag (ARDL) approach. The results show that more equitable distribution of income cause better environmental quality in the short-run and long-run. It is also the short-run and long run, economic growth has a beneficial effect on environmental quality, whereas energy consumption has a detrimental effect on the environment. Therefore, applying the income distribution improvement policies aside to revise energy sector policies and using the cleaner technologies can be used by policy makers as an instrument for long run development targets.

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Journal of Environmental and Natural Resource Economics
Volume 1, Issue 1 - Serial Number 1
January 2018
Pages 111-138

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History

  • Receive Date: 06 January 2016
  • Revise Date: 27 June 2016
  • Accept Date: 26 October 2016

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