The Nexus of Income Inequality, Growth, and Environmental Degradation in ASEAN Economies

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Kasman Karimi, Syamsul Amar, Idris

2024 International Journal of Sustainable Development and Planning Vol. 19 Issue 6 Article Cited by 1 Quartile

Abstract

This research aims to examine income inequality, growth and environmental degradation and their determinants in ASEAN countries by focusing on lower middle income countries during 2010-2022 by applying a simultaneous equation approach. The main finding in this research is that there are endogenous influences on each other, including income inequality and growth, as well as income inequality and environmental degradation. Other findings in this research include, the first includes the analysis that income inequality is negatively and significantly influenced by growth and environmental degradation. Meanwhile, unemployment and human resources have a positive and significant effect. Second, growth analysis is negatively and significantly influenced by income inequality, while capital investment has a positive and significant influence. Third, environmental degradation analysis is positively and significantly influenced by income inequality, growth and number of industries, while renewable energy consumption has a negative and significant influence. The recommendation from this research is to produce policy implications based on variables that have a significant influence on the issues of income inequality, growth and environmental degradation to achieve sustainable development. © 2024 The authors.

Affiliations

Faculty of Economics and Business, Universitas Bung Hatta, Padang, 25176, Indonesia; Faculty of Economics and Business, Universitas Negeri Padang, Padang, 25132, Indonesia