Re-examining the link between economic inequality and environmental performance:A perspective based on the moderating effects of biodiversity

Abstract

Inequality in economic distribution and environmental deterioration are two important issues facing the world today , and the relationship that exists between them is not yet clear. In what specific ways does economic inequality impact on the environment? Do redistributive instruments to combat income inequality cause environmental problems? Does the current state of the environment also have an impact on economic inequality? Answering these questions has important implications for the development of economic and environmental policies in countries around the world. This paper examines the relationship between the environment and income distribution by collecting panel data from 156 countries or regions around the world over the period 2006-2018. Furthermore, we examine the changes in the marginal utility of economic inequality on climate under different biodiversity scenarios by adding biodiversity as a moderating variable. The results show that, in the fixed-effects model, economic inequality has a positive effect on environmental performance in general, and that economic inequality will mainly affect the sub part of ecosystem vitality , with the most significant effect on climate change. Biodiversity has a moderating effect on economic inequality, with the most significant non-linear moderating effect.

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