What matters for environmental quality in the Next Eleven Countries: economic growth or income inequality?

  • Hemachandra Padhan
  • Ilham Haouas
  • Bhagaban Sahoo
  • Almas HeshmatiEmail author
Research Article


This study uses panel data for the period 1971–2013 to explore the implications of growth, wealth disparities, and per capita energy consumption on carbon emissions in a sample of Next Eleven (N-11) countries. It uses the first-generation (Pedroni and Kao) and second-generation (Westerlund) cointegration techniques to highlight a long-run interplay between the selected variables in carbon emission functions for all the N-11 countries. It also analyzes the long-run interactions among the series. Contrastingly, it also shows that economic growth, income inequalities, and per capita energy consumption accelerate CO2 emissions. Besides examining the effects of wealth disparity square, the study also uses the environmental Kuznets curve hypothesis in the context of the N-11 countries and discusses the policy implications of its findings.


CO2 emissions Income inequality Panel cointegration Next-11 countries 

JEL classification codes

Q57 O15 C23 



The authors are grateful for comments and suggestions by three anonymous referees and an editor of the journal on earlier versions of the manuscript.

Supplementary material

11356_2019_5568_MOESM1_ESM.xlsx (152 kb)
ESM 1 (XLSX 152 kb)


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© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Humanities and Social Sciences (HSS)Indian Institute of Technology (IIT)MadrasIndia
  2. 2.College of Business AdministrationAbu Dhabi UniversityAbu DhabiUAE
  3. 3.Anandapur CollegeAnandapurIndia
  4. 4.Department of Economics, Room GN702Sogang UniversitySeoulSouth Korea

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