Does income inequality affect direct and indirect household CO 2 emissions? A quantile regression approach

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ORIGINAL PAPER

Does income inequality affect direct and indirect household ­CO2 emissions? A quantile regression approach Yiyang Cheng1 · Yanan Wang1 · Wei Chen1   · Qian Wang1 · Guoli Zhao1 Received: 25 March 2020 / Accepted: 29 October 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract  Income inequality plays as a driver of direct and indirect C ­ O2 emissions from the household sector. Existing research has done a lot of work on the accounting methods and influencing factors of household direct ­CO2 emissions and indirect ­CO2 emissions. There are few studies on the impact of income inequality on direct and indirect household ­CO2 emissions under different emission levels. This research investigates the impact of income inequality on both direct and indirect ­CO2 emissions of 30 provinces in China from 2000 to 2015 using the STIRPAT model and panel quantile regression method. Theil index is selected to measure income inequality, population, per capita consumption level, energy intensity, urbanization, and industrial structure as control variables. The results indicate that the level of regional inequality is gradually increasing from the east to the west. The household indirect ­CO2 emissions in the east increased fastest, while the household direct ­CO2 emissions in the west increased fastest. Income inequality significantly promoted direct C ­ O2 emissions under all quantile levels, while the impact on indirect ­CO2 emissions is not significant. Population and per capita consumption will promote direct and indirect ­CO2 emissions. Urbanization has no significant impact on direct ­CO2 emissions. Only at the 90th percentile level is there a significant negative correlation between energy intensity and indirect ­CO2 emissions. Industrial structure significantly increases direct C ­ O2 emissions at the 50th, 75th, and 90th percentiles, while the impact on indirect ­CO2 emissions is not significant.

* Wei Chen [email protected] 1



College of Economics and Management, Northwest A&F University, NO.3 Taicheng Road, Yangling 712100, Shaanxi, China

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Y. Cheng et al.

Graphic abstract

Keywords  Income inequality · Household · CO2 emissions · Panel quantile regression

Introduction Since the 1950s, more than half of the global warming has been caused by human activities, and the results are more than 95% reliable. China has surpassed the United States to become the world’s largest emitter of ­CO2 in 2006 (Auffhammer and Carson 2008). China proposes that by 2030, carbon dioxide emissions per unit of GDP will be reduced by 60%-65% compared to 2005. In the past, most energy and ­CO2 were consumed and emitted by the industry sector rather than the household sector. With the rapid development and increasing incomes, China’s direct and indirect household ­CO2 emissions have surpassed those of industry (Li

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et al. 2015). Moreover, the continuous increase of residents’ energy demand will lead to more carbon emissions (Geng et al. 2017). Besides, the rapid economic d