The effect of income inequality on carbon dioxide emissions: A case study of Indonesia

Deni Kusumawardani, Ajeng Kartiko Dewi

Research output: Contribution to journalArticlepeer-review

35 Citations (Scopus)


The main objective of this study was to investigate the effect of income inequality on carbon dioxide (CO2) emissions in Indonesia from 1975 to 2017 using the Autoregressive Distributed Lag (ARDL) technique. Per capita GDP, urbanization, and dependency ratio are included as additional variables in the analytical models. The statistical estimation and tests showed that income inequality has a negative effect on CO2 emissions but the relationship pattern depends on the level of per capita GDP. An inverted U-shaped relationship was also observed between per capita GDP and CO2 emissions. This indicates the existence of an Environmental Kuznets Curve (EKC) in Indonesia. Moreover, both urbanization and the dependency ratio have a negative effect on CO2 emissions. This study suggests that income equality should be added to the policies formulated to aid economic growth in order to ensure that there is a reduction in CO2 emissions.

Original languageEnglish
Article numbere04772
Issue number8
Publication statusPublished - Aug 2020


  • ARDL
  • CO2 emissions
  • Dependency ratio
  • Economic development
  • Economic growth
  • Environmental economics
  • Income inequality
  • Inequality
  • Urbanization
  • per capita GDP


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