The impact of geopolitical risk on CO2 emissions inequality: Evidence from 38 developed and developing economies

Limei Chen, Giray Gozgor, Chi Keung Marco Lau, Mantu Kumar Mahalik, Kashif Nesar Rather, Alaa M. Soliman

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Abstract

This paper analyses the impact of geopolitical risk on carbon dioxide (CO 2) emissions inequality in the panel dataset of 38 developed and developing economies from 1990 to 2019. At this juncture, the empirical models control for the effects of globalisation, capital-labour ratio, and per capita income on CO 2 emissions inequality. The panel cointegration tests show a significant long-run relationship among the related variables in the empirical models. The panel data regression estimations indicate that geopolitical risk, capital-labour ratio, and per capita income increase CO 2 emissions inequality. However, globalisation negatively affects CO 2 emissions inequality in the panel dataset of 38 developed and developing countries. The pairwise panel heterogeneous causality test results align with these benchmark results and indicate no reverse causality issue. Potential policy implications are also discussed.

Original languageEnglish
Article number119345
JournalJournal of Environmental Management
Volume349
Early online date9 Nov 2023
DOIs
Publication statusPublished - 10 Jan 2024

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