Is global carbon inequality getting better or worse? A decomposition analysis of carbon inequality in intraincome and interincome groups

Abstract

PurposeThis study is aimed at better understanding the evolution of inequality in carbon emission in intraincome and interincome groups in the world, and then to uncover the driving factors that affect inequality in carbon emission.Design/methodology/approachThe approach is developed by combining the Theil index and the decomposition technique. Specifically, the Theil index is used to measure the inequality in carbon emissions from the perspective of global and each income group level. The extended logarithmic mean Divisia index was developed to explore the driving factors.FindingsThis study finds that the inequality in carbon emissions of intraincome group is getting better, whereas the inequality in carbon emission of interincome group is getting worse. And the difference in global carbon emissions between income groups is the main source of global carbon emission inequality, which is greater than that within each income group. In addition, the high-income group has transferred their carbon emissions to upper-middle income group by importing high-carbon-intensive products to meet the domestic demand, while lower-middle-income group do not fully participate in the international trade.Practical implicationsTo alleviate the global carbon inequality, more attention should be paid to the inequality in carbon emission of interincome group, especially the trade between high-income group and upper-middle income group. From the perspective of driving factors, the impact of import and export trade dependence on the per capita carbon emissions of different income groups can almost offset each other, so the trade surplus effect should be the focus of each group.Originality/valueIn order to consider the impact of international trade, this study conducts a comprehensive analysis of global carbon emissions inequality from the perspective of income levels and introduces the import and export dependence effect and the trade surplus effect into the analysis framework of global carbon emission inequality drivers, which has not been any research carried out so far. The results of this paper not only provide policy recommendations for mitigating global carbon emissions but also provide a new research perspective for subsequent inequality research.