Does equitable income distribution influence environmental quality? Evidence from developing countries of ASEAN-4

Abdul Rahim Ridzuan, Nor Asmat Ismail, Abdul Fatah Che Hamat, Abu Hassan Shaari Md Nor, Elsadig Musa Ahmed

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This paper investigates income distribution-environment nexus in the context of country-specific time series data from four member states of the Association of South East Asian Nations (ASEAN-4), namely Malaysia, Indonesia, Philippines and Thailand. The short run and long run effects of income inequality, economic growth, domestic investment, trade openness and energy consumption on Carbon Dioxide (CO2) emissions were examined by using Autoregressive Distributed Lag (ARDL) estimation. The annual data used in this study covers the period from 1971 to 2013. More equitable income distribution results in better environmental quality for Indonesia and Thailand but leads to a worsening environment in the case of Malaysia. Meanwhile, no significant relationship was detected between income distribution and environmental quality in Philippines. It was also found that domestic investment and energy consumption have beneficial effects on the environmental quality in Indonesia whereas trade openness and the expansion of the economy (GDP) will have a detrimental effect on its environment. However, these variables have shown mixed results in the case of Indonesia, Philippines and Thailand. The main contribution of this study is the introduction of income distribution as a new determinant for environmental quality for these ASEAN-4 countries, thus giving new insights for policymakers to propose better policy recommendations on achieving sustainable growth.

Original languageEnglish
Pages (from-to)385-400
Number of pages16
JournalPertanika Journal of Social Sciences and Humanities
Volume25
Issue number1
Publication statusPublished - 1 Mar 2017

Fingerprint

ASEAN
environmental quality
income distribution
Indonesia
developing country
Philippines
Thailand
energy consumption
evidence
Malaysia
difference in income
time series
economic growth
determinants
economy
Income distribution
Developing countries
Environmental quality
Income Distribution
Environmental Influences

Keywords

  • ASEAN-4
  • Environmental Kuznets curve
  • Environmental quality
  • Income distribution
  • Long run elasticities

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Arts and Humanities(all)
  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)

Cite this

Does equitable income distribution influence environmental quality? Evidence from developing countries of ASEAN-4. / Ridzuan, Abdul Rahim; Ismail, Nor Asmat; Hamat, Abdul Fatah Che; Md Nor, Abu Hassan Shaari; Ahmed, Elsadig Musa.

In: Pertanika Journal of Social Sciences and Humanities, Vol. 25, No. 1, 01.03.2017, p. 385-400.

Research output: Contribution to journalArticle

Ridzuan, Abdul Rahim ; Ismail, Nor Asmat ; Hamat, Abdul Fatah Che ; Md Nor, Abu Hassan Shaari ; Ahmed, Elsadig Musa. / Does equitable income distribution influence environmental quality? Evidence from developing countries of ASEAN-4. In: Pertanika Journal of Social Sciences and Humanities. 2017 ; Vol. 25, No. 1. pp. 385-400.
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