The Impact of Environmental Destruction (Groundwater Level Reduction) on Income Inequality in Jiroft

Environmental degradation and income inequality are both global challenges that have much in common but are often dealt with separately. The purpose of this study was to investigate the effect of environmental degradation (drop in groundwater level) on income inequality in Jiroft during the period of 1992-2019. To investigate the long-run and short-run relationship between the research variables, the ARDL model and the error correction method (ECM) were used. The results showed that as a result of population increase by one percent, income inequality index (Gini coefficient) decreased in Jiroft by 0.26 percent. As a result of environmental degradation (groundwater loss) by one percent, income inequality index (Gini coefficient) in Jiroft decreases by 0.36 percent. and as a result of agricultural production increase by one percent, income inequality index (Gini coefficient) in Jiroft increases by 0.96 percent. based on the results, government officials are proposing to create income and employment opportunities for people in the agricultural, mining and industrial sectors and services to reduce pressure on natural resources.