Globalisation and carbon dioxide emissions inequality in OECD countries

Abstract

Economic 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.