Greenhouse gas emission widens income inequality in Africa
2022
Ashenafi, Biruk Birhanu
Over the past couple of decades, the world has witnessed a rise in greenhouse gas (GHG) emissions and rising income inequality that threatens human well-being. Addressing these challenges and ensuring sustainable development become a pressing issue for policymakers. This paper investigates the impact of GHG emissions on income inequality in Africa. The study uses a panel data set from 49 countries from 1981 to 2015 and shows that GHG emission widens income inequality. The result is robust for alternative emission indicators. A direct implication is that climate change policy should be designed to narrow income inequality. It is emphasized that mitigation actions should focus on the agriculture sector. Hence, intervention towards energy-smart agriculture, land conservation practices, exploiting the job creation potential, and strengthening value addition in the agricultural sector is decisive. Reforming agriculture reduces emission, narrows income inequality, and realizes sustainable development on the continent.
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