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<p>We will investigate in this paper the relation between income inequality and climate change, taking into account that the increase of carbon emissions has among consequences the increase of inequalities. The most vulnerable to climate change are the poorest and less developed countries. Climate change represents an important challenge for EU policymakers and the transition to zerocarbon emissions will lead to greater social inclusion and convergence among EU countries. We use in this paper two-stage OLS in order to analyse the relationship between income inequality and carbon emissions in case of EU countries.. We apply our model to two groups of European Union countries, the old member states - EU15 and new member states - EU13. Our results confirm that there are important differences between the two groups regarding the relationship between climate change and income inequalities. Therefore, policies implemented at EU level are extremely important in order to mitigate the adverse effects of climate change on growing inequality and poverty in EU countries. Governments must invest in new technologies, industries and innovation in order to address the complex challenge posed by mitigating climate change.</p>
</abstract>

We will investigate in this paper the relation between income inequality and climate change, taking into account that the increase of carbon emissions has among consequences the increase of inequalities. The most vulnerable to climate change are the poorest and less developed countries. Climate change represents an important challenge for EU policymakers and the transition to zerocarbon emissions will lead to greater social inclusion and convergence among EU countries. We use in this paper two-stage OLS in order to analyse the relationship between income inequality and carbon emissions in case of EU countries.. We apply our model to two groups of European Union countries, the old member states - EU15 and new member states - EU13. Our results confirm that there are important differences between the two groups regarding the relationship between climate change and income inequalities. Therefore, policies implemented at EU level are extremely important in order to mitigate the adverse effects of climate change on growing inequality and poverty in EU countries. Governments must invest in new technologies, industries and innovation in order to address the complex challenge posed by mitigating climate change.

The Impact of Climate Change on Income Inequality. Evidence from European Union Countries

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

We will investigate in this paper the relation between income inequality and climate change, taking into account that the increase of carbon emissions has...

The Impact of Climate Change on Income Inequality. Evidence from European Union Countries

Published Online: Jan 26, 2021

Page range: 223 - 235

DOI: https://doi.org/10.2478/sbe-2020-0055

Keywords
income inequality, poverty, climate change mitigation policies

© 2020 Albu Ada-Cristina et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Impact of Climate Change on Income Inequality. Evidence from European Union Countries

Published Online: Jan 26, 2021

Page range: 223 - 235

DOI: https://doi.org/10.2478/sbe-2020-0055

Keywordsincome inequality, poverty, climate change mitigation policies

© 2020 Albu Ada-Cristina et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
income inequality, poverty, climate change mitigation policies