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Exploring the nexus between energy consumption, income inequality and poverty, economic growth, and carbon dioxide emission: evidence from two step system generalized method of moments

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Abstract

The concern of environmental degradation, poverty, and income inequality remains a priority in achieving sustainable development goals. Countries are trying to reduce income inequality, alleviate poverty, and reduce environmental degradation which needs special attention. Consequently, this study explores the effect of income inequality, poverty, and energy consumption on carbon dioxide emission in the Belt and Road Initiative countries from 1996 to 2018. By employing the generalized method of moments, the findings show that income inequality, poverty, and energy consumption significantly increase carbon dioxide emission and lead to environmental degradation, while access to electricity significantly raises environmental quality. Economic growth positively affects carbon dioxide emission; however, the environmental Kuznets curve is valid. Income inequality exerts a moderating effect on carbon dioxide emission via per capita economic growth that reduces environmental degradation in the Belt and Road Initiative countries. The results of this study give important policy implications for the Belt and Road Initiative countries.

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Data used in the analysis are available upon reasonable request from the corresponding author.

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Acknowledgements

The authors are thankful to the journal editor and anonymous reviewers for their useful comments and suggestions that improved the quality of this paper

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Authors and Affiliations

  1. School of Economics and Management, Zhejiang University of Science and Technology, Hangzhou, China

    Hayat Khan

  2. China Center for Special Economic Zone Research, Shenzhen University, Shenzhen, China

    Liu Weili

  3. Business School of Xiangtan University, Hunan, China

    Itbar Khan

  4. China National Institute of Standardization, Beijing, China

    Jianfang Zhang

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  1. Hayat Khan
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  2. Liu Weili
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Conceptualization and formal analysis were performed by Hayat Khan, idea and structure of the study were arranged by Liu Weili, formal writing were done by Itbar Khan, and proofreading were done by Jianfang Zhang.

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Correspondence to Liu Weili.

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Khan, H., Weili, L., Khan, I. et al. Exploring the nexus between energy consumption, income inequality and poverty, economic growth, and carbon dioxide emission: evidence from two step system generalized method of moments. Environ Sci Pollut Res 30, 35996–36011 (2023). https://doi.org/10.1007/s11356-022-24695-x

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