Relationship between Corruption, Income Inequality and Environmental Degradation in Pakistan: An Econometric Analysis

Samia Nasreen, Mahmood-ul-Hassan and Muhammad Faraz Riaz
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Mahmood-ul-Hassan: SMME, Islamabad, Pakistan.
Muhammad Faraz Riaz: Government College University Faisalabad, Pakistan.

Bulletin of Energy Economics (BEE), 2016, vol. 4, issue 1, 12-22

Abstract: The purpose of present study is to examine the impact of corruption and income inequality on environmental degradation in Pakistan using time series data for the period1980-2013. For empirical analysis, Augmented Dickey Fuller (ADF), Dickey Fuller Generalized Least Square (DF-GLS) unit root tests, Autoregressive Distributed Lag (ARDL) approach to cointegration and an Error Correction Model (ECM) has been used. The empirical findings confirm the validity of environmental Kuznets Curve (EKC) in the case of Pakistan. The results indicate that in the absence of corruption, income inequality is negatively correlated with environmental degradation while the combined effect of corruption and income inequality on environmental degradation is found to be positive in the long-run.

Keywords: Environmental Degradation; Corruption; Income Inequality; Pakistan (search for similar items in EconPapers)
JEL-codes: O44 Q50 Q53 (search for similar items in EconPapers)
Date: 2016
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