Threshold effect of carbon tax on the relationship between environmental pollution and inequality of income distribution in order to improve social development
Subject Areas : Journal of Iranian Social Development Studiesmahboobeh sadeghinori 1 , Roya Seyfipour 2 * , مرجان marjan دامن کشیدهdamankeshideh 3 , Amir Reza Keyghobadi 4
1 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
4 - Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
Keywords: Carbon tax, environmental pollution, income distribution, improving social development, developed countries, panel threshold approach model,
Abstract :
In order to reduce the emission of greenhouse gases and the resulting climate threats, economists have proposed various policies, including the carbon tax policy, which can affect other economic variables. The purpose of this article is to investigate the threshold effect of carbon tax on the relationship between environmental pollution and inequality of income distribution in order to improve social development. For this purpose, the panel threshold approach model (PSTR) was used based on the annual data of developed countries during the period of 2008-2021. The estimation results of the non-linear part of the model show the existence of a positive relationship between the inflation rate variable and the income distribution inequality index, and the government income variables from environmental pollution tax, carbon tax rate, investment, human capital, GDP growth rate Per capita and the employment level of the labor force have a negative relationship with the inequality index of income distribution. So that for one unit increase in government income from environmental pollution tax and carbon tax rate, income distribution inequality decreases by 0.11 and 0.26 units, respectively. This shows that the way of redistributing income from carbon tax can reduce income inequality by moving from linear to non-linear sector between 2 and 26% and the distributional effects of environmental taxes reduce income inequality and reduce social development and poverty in developing countries. It is found that it emphasizes the importance of policy design and re distributive target mechanisms.
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