The effect of income inequality and economic growth on environmental quality: A comparative analysis between Burkina Faso and Nigeria

This paper investigates the relationship among income inequality, carbon emissions rate, and economic growth in Burkina Faso and Nigeria in the period 1980-2016. Using the ARDL bounds approach to ascertain the short- and long-run dynamics of the variables, the paper examined whether or not income inequality, poverty, and growth affected environmental quality in both countries. Findings indicated a U-shaped inverted connection between environmental degradation and income growth in Nigeria while the U-shaped relationship was found in Burkina Faso. The relationship between income inequality and environmental degradation in both countries was positive while government expenditure and poverty were found to increasing carbon emissions in the long-run, only in Nigeria. The short-run results showed that income inequality reduced carbon dioxide emissions in Nigeria and had significant and adverse effects in Burkina Faso. Consequently, policymakers must pay equal attention to income inequality and poverty alleviation on the one hand and cleaning the environment and economic growth on the other hand.