Investigating the non-linear relationship between environmental pollution and inequality of income distribution with the effectiveness of environmental effects

Subject Areas : Environmental pollutions (water, soil and air)

mahboobeh sadeghinori ¹ , marjan damankeshideh ² , roya seyfipour ³ , amir reza kayghobadi ⁴

1 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Economics, Central Tehran Branch, Azad Islamic Institute, Tehran, Iran. *(Corresponding Author)
3 - Department of Economics, Central Tehran Branch, Azad Islamic Institute, Tehran, Iran.
4 - Department of Industrial Mana.gement, Central Tehran Branch, Islamic Azad Dashgah, Tehran, Iran.

Received: 2023-12-11 Accepted : 2024-03-10 Published : 2024-06-21

Keywords: environmental effects, environmental pollution, income distribution, D8 countries, panel threshold approach model,

Abstract :

Background and Objective: accelerating economic growth, increasing demand for products and achieving global trade; It leads to the increase in energy consumption, especially fossil fuels, and ultimately the emission of greenhouse gases, including CO2, which is the source of many of these pollutions. The purpose of this article is to investigate the non-linear relationship between environmental pollution and inequality of income distribution with the effectiveness of environmental effects.

Material and Methodology: for this purpose, the panel threshold approach model (PSTR) was used based on the annual data of the countries (D8) during the period of 2008-2021. In this panel soft transition regression model (PSTR), the dependent variable of income distribution inequality and The explanatory variables; Direct and indirect taxes are the government's income from taxes on environmental pollution, human capital, gross domestic product per capita, energy consumption intensity, inflation and employment.

Findings: The results of estimating the non-linear part of the model show that there is a positive relationship between the inflation rate variable and the income distribution inequality index, and the government income variables from tax on environmental pollution, investment, human capital, growth rate of GDP per capita and The employment level of the labor force has a negative relationship with the inequality index of income distribution. So that for one-unit increase in the government's income from environmental pollution tax, the inequality of income distribution decreases by 0.26 units.

Discussion and Conclusion: The growth of production through the need for raw materials and the increase in energy consumption in the production sector, as well as the production of more goods and services, has an impact on the emission of carbon dioxide. Therefore, paying attention to the issue of stability of production growth in developing countries should be one of the issues that are more important to government officials than any other issue. When the growth rate of production increases significantly, there is increasing pressure on resources.In this regard, the demand for specialized manpower, the need for capital and capital equipment, and the consumption of raw materials and energy will increase.If it is not possible to exploit more of each of the mentioned resources in parallel with the growth of production, the production will face a bottleneck, which can lead to an increase in the inequality of income distribution.In this situation, tax policies and environmental tax can act as a balancer of income.

 

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