Calculation of Gini coefficient index and its effect on environmental pollution in Iran

This study investigates the relationship between income inequality and environmental pollution (CO2 emissions) using provincial data of Iran during the years 2007-2016. For this purpose, for the purpose of studying the income distribution, the Gini coefficient index was calculated as a proxy for income distribution inequality and carbon diffusion in different provinces of Iran using existing theories. The results of the calculations of the Gini coefficient show that during the studied years the trend of the index has been quite oscillating, but in general, it dropped from 0.44 in 2007 to 0.38 in 2016. Also, the results of calculations of carbon emissions indicate that the highest total emissions (72%) are from industry, power plants and transportation. The results of model estimation show that the Gini coefficient has a positive effect on carbon emissions, and with a 1% increase in income inequality, carbon emissions increase by 0.31%. The effects of GDP, industrialization and energy consumption on carbon emissions in Iran are positive. So, with a 1% increase in these variables, the pollution rate will increase by 0.07, 0.07% and 0.004% respectively.