Globalisation and carbon dioxide emissions inequality in OECD countries

Abstract

AbstractEconomic growth has been crucial in contributing to carbon dioxide (CO2) emissions from the Industrial Revolution, and it affects CO2 emissions heterogeneously with different income levels. Therefore, studying the role of economic growth on inequality in carbon emissions is imperative. This paper analyses the determinants of CO2 emissions inequality in the panel dataset of 37 Organisation for Economic Co‐operation and Development (OECD) countries from 1990 to 2019. Age dependency, globalisation, and institutional quality reduce CO2 inequality in the OECD economies. However, gross domestic product per capita increases CO2 inequality. The results are robust to utilise different panel data estimation techniques. This paper provides the first evidence in the literature of determinants of CO2 inequality across the OECD countries. It is suggested that governments in the OECD economies offer a blueprint for a sustainable society of green economic growth. Other potential policy implications are also discussed.