Liu Xuanning

                                                                          School of International Economics and International Relations

Abstract: Since the industrial revolution, global temperatures have been rising. In recent years, the rate of temperature rise has accelerated significantly. Vulnerable groups, such as the poor, are being disproportionately affected. Where they live, assets, health, and industries are more affected than their wealthy compatriots, which will lead to higher income inequality, which in turn will cause some people to return to poverty and affect the economy of the country as a whole. Based on the data of 116 countries around the world from 1970 to 2015, this paper uses a fixed effect panel data model to study the relationship between climate change and income inequality. The results show that rising temperatures will increase the level of income inequality. This effect exists not only in the short term, but also in the long term. This effect still exists after taking into account the effects of taxes and transfer payments. Follow-up mechanism analysis shows that climate change increases income inequality mainly by affecting agricultural production. After the robustness test such as changing the explanatory variable, the explained variable and deleting the low-quality samples, the conclusion of this paper is still reliable. Climate change has a great negative impact on ecosystems and human society, and income inequality will also have an impact on economic growth and social stability. Countries should actively respond to the challenges of climate change. The international community should also strengthen cooperation in dealing with climate change. Policy makers should give full consideration to vulnerable groups when formulating policies, so as to prevent climate change from making their situation more difficult.

Read the full article here:       气候变化与收入不平等——基于跨国面板数据的实证分析.pdf