Javascript must be enabled to continue!
Inequality and the adoption of climate mitigation policies
View through CrossRef
The objective of this study is to analyze how inequality affects the demand for emission reduction policies. It is generally recognized that a more equal income distribution can improve environmental quality (IPCC, 2022) influencing several mechanisms, such as the value placed on environmental public goods, the influence of social norms or the cost-benefit distribution of environmental protection. However, the focus so far has been on outputs (i.e., pollution concentration), disregarding the fact that a major component in determining the impact on the environment is the demand for – and implementation of – policies, which are the tools to actually define emission caps or incentivize green technologies.To fill this gap, we explicitly focus on the relationship between inequality and environmental policies. Our leading research question is: how does the distribution of income affect the demand of emission reduction policies?Our analysis covers national mitigation-related policies implemented in G20 countries between 1997 and 2021. We use the Climate Policy Database (Nascimento et al., 2022) to create indicators of policy adoption. In line with the policy density approach, we use the count of mitigation policies adopted annually by each country as dependent variable, and consider it as an approximation of climate policy demand.To capture different aspects of income distribution, we adopt different inequality measures (WID, 2022). We consider the national income shares of specific parts of the population (Top 10%, Bottom 10%, Bottom 40%) as well as commonly used inequality indices (Gini index and Palma ratio). We also construct a composite index, which combines the Gini with the ratio of the income shares held by the top and bottom 10% (Sitthiyot & Holasut 2022). We interact our inequality indicators with GDP per capita (PPP), as we assume that the impact of inequality may differ according to the national income level.Given the count data nature of our dependent variable, our empirical strategy is based on a fixed-effects Poisson regression model. We control for several institutional and policy-relevant variables.Our results show that the impact of inequality on climate policy implementation depends on the country's average income level. While in wealthy countries a reduction of inequality leads to a lower number of mitigation policies, in poorer countries an increase in inequality may drive the adoption of new policies. At the same time, the effect of economic growth is also not straightforward: an increase in average income has a positive impact on policy adoption in low-inequality societies. Conversely, an average income increase has a negative impact on climate mitigation adoption in highly unequal societies.Our findings confirm that inequality plays a key role in the adoption of national mitigation policies. These results, which are robust across multiple specifications of inequality indicators, highlight the importance of advancing knowledge on how equity and environmental challenges interact in order to get full support and progress with the climate agenda. Our results aim to inform the current policy debate on potential trade-offs between climate and equity by presenting new evidence on the interconnections between social and environmental goals.
Title: Inequality and the adoption of climate mitigation policies
Description:
The objective of this study is to analyze how inequality affects the demand for emission reduction policies.
It is generally recognized that a more equal income distribution can improve environmental quality (IPCC, 2022) influencing several mechanisms, such as the value placed on environmental public goods, the influence of social norms or the cost-benefit distribution of environmental protection.
However, the focus so far has been on outputs (i.
e.
, pollution concentration), disregarding the fact that a major component in determining the impact on the environment is the demand for – and implementation of – policies, which are the tools to actually define emission caps or incentivize green technologies.
To fill this gap, we explicitly focus on the relationship between inequality and environmental policies.
Our leading research question is: how does the distribution of income affect the demand of emission reduction policies?Our analysis covers national mitigation-related policies implemented in G20 countries between 1997 and 2021.
We use the Climate Policy Database (Nascimento et al.
, 2022) to create indicators of policy adoption.
In line with the policy density approach, we use the count of mitigation policies adopted annually by each country as dependent variable, and consider it as an approximation of climate policy demand.
To capture different aspects of income distribution, we adopt different inequality measures (WID, 2022).
We consider the national income shares of specific parts of the population (Top 10%, Bottom 10%, Bottom 40%) as well as commonly used inequality indices (Gini index and Palma ratio).
We also construct a composite index, which combines the Gini with the ratio of the income shares held by the top and bottom 10% (Sitthiyot & Holasut 2022).
We interact our inequality indicators with GDP per capita (PPP), as we assume that the impact of inequality may differ according to the national income level.
Given the count data nature of our dependent variable, our empirical strategy is based on a fixed-effects Poisson regression model.
We control for several institutional and policy-relevant variables.
Our results show that the impact of inequality on climate policy implementation depends on the country's average income level.
While in wealthy countries a reduction of inequality leads to a lower number of mitigation policies, in poorer countries an increase in inequality may drive the adoption of new policies.
At the same time, the effect of economic growth is also not straightforward: an increase in average income has a positive impact on policy adoption in low-inequality societies.
Conversely, an average income increase has a negative impact on climate mitigation adoption in highly unequal societies.
Our findings confirm that inequality plays a key role in the adoption of national mitigation policies.
These results, which are robust across multiple specifications of inequality indicators, highlight the importance of advancing knowledge on how equity and environmental challenges interact in order to get full support and progress with the climate agenda.
Our results aim to inform the current policy debate on potential trade-offs between climate and equity by presenting new evidence on the interconnections between social and environmental goals.
Related Results
“The Earth Is Dying, Bro”
“The Earth Is Dying, Bro”
Climate Change and Children
Australian children are uniquely situated in a vast landscape that varies drastically across locations. Spanning multiple climatic zones—from cool tempe...
Climate and Culture
Climate and Culture
Climate is, presently, a heatedly discussed topic. Concerns about the environmental, economic, political and social consequences of climate change are of central interest in academ...
A Synergistic Imperative: An Integrated Policy and Education Framework for Navigating the Climate Nexus
A Synergistic Imperative: An Integrated Policy and Education Framework for Navigating the Climate Nexus
Climate change acts as a systemic multiplier of threats, exacerbating interconnected global crises that jeopardize food security, biodiversity, and environmental health. These chal...
MANIFESTATIONS OF INEQUALITY IN THE ACADEMIC ENVIRONMENT AND ON THE LABOUR MARKET AND COMMUNICATIVE TECHNOLOGIES FOR OVERCOMING IT
MANIFESTATIONS OF INEQUALITY IN THE ACADEMIC ENVIRONMENT AND ON THE LABOUR MARKET AND COMMUNICATIVE TECHNOLOGIES FOR OVERCOMING IT
Fedoryshyna L.M., Makartetska V.S., Rohozha A.O., Havrysh A.V. MANIFESTATIONS OF INEQUALITY IN THE ACADEMIC ENVIRONMENT AND ON THE LABOUR MARKET AND COMMUNICATIVE TECHNOLOGIES FOR ...
Climate-linked bonds
Climate-linked bonds
Climate-linked bonds are an innovative financial tool designed to address the growing challenges of climate change. These bonds, ideally issued by governments and supranational org...
Inequality and the adoption of climate mitigation policies
Inequality and the adoption of climate mitigation policies
This paper examines the relationship between income inequality and the adoption of climate mitigation policies in G20 countries between 1996 and 2020. Using a panel dataset on nati...
Evaluating the Effectiveness of the European Union’s 2040 Climate Target: Policy Ambitions versus Implementation Challenges
Evaluating the Effectiveness of the European Union’s 2040 Climate Target: Policy Ambitions versus Implementation Challenges
As the level of ambition was increased, in July 2025, the European Commission set out a new binding greenhouse gas (GHG) reduction objective of - 90% by 2040 with respect to 1990, ...
Analisis Dampak Desentralisasi Fiskal Terhadap Ketimpangan Antarwilayah di Indonesia
Analisis Dampak Desentralisasi Fiskal Terhadap Ketimpangan Antarwilayah di Indonesia
Indonesia as a developing country is currently in the economic development phase. Economic development that is not uniform between one region and another will cause development ine...

