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

Harati, Javad; Ebrahimi Salari, Taghi; Amini, Toktam

doi:10.22054/eenr.2017.7001

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

Authors

Javad Harati

Taghi Ebrahimi Salari

Toktam Amini

10.22054/eenr.2017.7001

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.

Keywords

Keywords: Income Inequality

Environment Quality

Bayer-Hanck Cointegration Approach

Autoregressive with Distributed Lag Model