The Nexus Between Income Inequality and Environmental Degradation in ASEAN-6 Countries During 1992 – 2015 from Islamic Perspective
The purpose of the study is to examine the relationship between income inequality and environmental degradation in ASEAN-6 countries namely Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam. It also provide analysis from the Islamic perspective based on result of the economet...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Department of Islamic Economics, IPB University with the Indonesian Association of Islamic Economist (IAEI)
2024
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/113115/7/113115_The%20Nexus%20Between%20Income%20Inequality.pdf http://irep.iium.edu.my/113115/ https://journal.ipb.ac.id/index.php/jalmuzaraah/article/view/56182/28482 https://doi.org/10.29244/jam.12.1.159-175 |
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| Summary: | The purpose of the study is to examine the relationship between income inequality and
environmental degradation in ASEAN-6 countries namely Indonesia, Malaysia, the Philippines,
Thailand, Singapore, and Vietnam. It also provide analysis from the Islamic perspective based on result
of the econometric regression. The study utilizes annual panel data from1992 until 2015 where the region
suffered from high income distribution and environmental degradation. The analytical tool used in the
study is Bias-Corrected Least Squared Dummy Variable (LSDVC), which is sufficient for small panel
data. The methodological approach leads to two main findings. First, income inequality, measured by
Gini coefficient, is contributing to environmental degradation (proxied by CO₂ emission and Natural
Resources Depletion) in the short- and long-run term. Other explanatory variables namely GDP per
capita and energy consumption, also impact significantly on environmental degradation level in the
short- and long-term. From the findings, it is recommended that greater investment is required in
addressing high level of income inequality and environmental issues. Instruments in Islam such as zakat
and waqf provide solution to overcome issue of high income gap and environmental degradation in
ASEAN-6 countries, moreover majority of Muslim population located in ASEAN countries. Hence,
collaboration should be enhanced among the ASEAN-6 countries where wealth distribution, technology
and knowledge sharing from high income countries to low and middle-income in ASEAN countries to
mitigate the negative impact of high income inequality and environmental issue in the region |
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