Income Inequality And Globalization As Drivers Of Environmental Degradation: Evidence From Ten Highly Polluting Asian Economies

Abstract

This study examines the impact of income inequality and globalization on carbon emission in ten selected Asian countries during the period 2001 to 2021. This study employed the Redundant fixed effect test and the Hausman test, results of both indicate that the Fixed Effect method is appropriate and its results shows that the GINI and POP have negative and significant impact on environmental degradation. But the GDP and IND have positive and significant impact on environmental degradation of the ten selected Asian Countries. Moreover, GLO has no effect on the Co2 in these countries. The interaction term (GLO*GINI) has positive and significant impact on environment degradation. By using an interactive term, globalization appears to have a major detrimental impact on environmental quality, it does not appear to have a significant connection with CO2 emissions. This paper provides helpful policy recommendations for governments and policymakers to support environmental sustainability. The study suggests addressing income inequality and population growth to mitigate environmental degradation. It also suggests balancing economic growth with environmental sustainability through green technologies and renewable energy. Additionally, addressing industrial pollution through stricter regulations and cleaner production methods can help reduce the environmental footprint of industrial activities. These recommendations aim to improve overall environmental sustainability. This paper provides helpful policy recommendations for governments and policymakers to support environmental sustainability.