Research Article

Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis

Volume: 8 Number: 3 July 2, 2025
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Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis

Abstract

The main goal of this research is to empirically examine how environmental unsustainability influences income disparity. Utilizing globally aggregated data and panel data analysis methods, the relationship between environmental indicators such as carbon emissions, natural resource depletion, deforestation, and climate change and the Gini coefficient is examined. When the analyses are performed individually for developed and developing nations, the results indicate that environmental degradation intensifies income inequality to a greater extent in developing countries compared to developed ones. Based on the results obtained through the fixed effects model and the panel ARDL approach, it is determined that environmental degradation has a statistically significant and long-term exacerbating effect on income inequality. Granger causality tests indicate that environmental indicators have a unidirectional impact on income distribution inequity. However, the literature review suggests that this relationship is often examined as bidirectional. The findings of this research highlight the necessity of evaluating environmental and social policies in an integrated manner. In light of these results, it is recommended that environmental protection policies be shaped based on principles of fair and inclusive development to prevent the deepening of social inequalities.

Keywords

Supporting Institution

This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors. The author extends sincere thanks to international organizations (e.g. the World Bank, ND-GAIN) for facilitating access to data. In addition, the author would like to express appreciation to colleagues who provided valuable insights and suggestions throughout the research process. Gratitude is also expressed to all sources and academic contributions that have, directly or indire

Ethical Statement

It is declared that scientific and ethical principles have been followed while carrying out and writing this study and that all the sources used have been properly cited.

References

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  2. Ali, I. M. A. (2022). Income inequality and environmental degradation in Egypt: evidence from dynamic ARDL approach. Environmental Science and Pollution Research, 29(6), 8408-8422. https://doi.org/10.1007/s11356-021-16275-2
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  4. Barrett, C. B. and Swallow, B. M. (2006). Fractal poverty traps. World Development, 34(1), 1–15. https://doi.org/10.1016/j.worlddev.2005.06.008
  5. Boyce, J. K. (1994). Inequality as a Cause of Environmental Degradation. Ecological Economics, 11(3), 169-178. https://doi.org/10.1016/0921-8009(94)90198-8
  6. Ceddia, M. G. (2019). The impact of income, land, and wealth inequality on agricultural expansion in Latin America. PNAS, 116(7), 2527-2532. https://doi.org/10.1073/pnas.1814894116
  7. Cevik, S. and Jalles, J. T. (2022). For Whom the Bell Tolls: Climate Change and Inequality. IMF Working Paper No. 22(103), 1-27. https://doi.org/10.5089/9798400208126.001
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Details

Primary Language

English

Subjects

Ecological Economics, Environmental Economy, Sustainable Development, Green Economy

Journal Section

Research Article

Publication Date

July 2, 2025

Submission Date

May 13, 2025

Acceptance Date

June 29, 2025

Published in Issue

Year 2025 Volume: 8 Number: 3

APA
Ulu, M. İ. (2025). Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis. Uluslararası Ekonomi Siyaset İnsan Ve Toplum Bilimleri Dergisi, 8(3), 40-62. https://doi.org/10.59445/ijephss.1698295
AMA
1.Ulu Mİ. Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis. Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi. 2025;8(3):40-62. doi:10.59445/ijephss.1698295
Chicago
Ulu, Mustafa İlker. 2025. “Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis”. Uluslararası Ekonomi Siyaset İnsan Ve Toplum Bilimleri Dergisi 8 (3): 40-62. https://doi.org/10.59445/ijephss.1698295.
EndNote
Ulu Mİ (July 1, 2025) Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis. Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi 8 3 40–62.
IEEE
[1]M. İ. Ulu, “Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis”, Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi, vol. 8, no. 3, pp. 40–62, July 2025, doi: 10.59445/ijephss.1698295.
ISNAD
Ulu, Mustafa İlker. “Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis”. Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi 8/3 (July 1, 2025): 40-62. https://doi.org/10.59445/ijephss.1698295.
JAMA
1.Ulu Mİ. Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis. Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi. 2025;8:40–62.
MLA
Ulu, Mustafa İlker. “Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis”. Uluslararası Ekonomi Siyaset İnsan Ve Toplum Bilimleri Dergisi, vol. 8, no. 3, July 2025, pp. 40-62, doi:10.59445/ijephss.1698295.
Vancouver
1.Mustafa İlker Ulu. Effects of Environmental Unsustainability on Income Inequality: A Panel Data Analysis. Uluslararası Ekonomi Siyaset İnsan ve Toplum Bilimleri Dergisi. 2025 Jul. 1;8(3):40-62. doi:10.59445/ijephss.1698295

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